The market reevaluation triggered by robotics has likely exceeded the expectations of XPeng's Chairman and CEO He Xiaopeng. When IRON debuted, online discussions were rife with skepticism, including claims that He was staging a performance. This distrust reflects a broader market stereotype about Chinese automakers—adept at material stacking and marketing but lacking in genuine technological breakthroughs like embodied intelligence.

The louder the skepticism grew, the more impactful XPeng's eventual reveal became. He Xiaopeng wasn’t seeking mere validation but a catalyst for the capital markets to reassess XPeng’s valuation model. When He demonstrated IRON’s mechanical structure by cutting open its leg with scissors, the market’s outdated valuation framework for XPeng was similarly dismantled.

XPeng’s U.S.-listed shares surged 16.15% on November 10, followed by another 8% gain the next day, reaching $28.07 per share—a yearly high. Its Hong Kong-listed shares also jumped 17.93% on November 11, hitting a near three-year peak at HK$105.2 per share by November 12. This rally stemmed from the market’s realization that XPeng’s AI and autonomous driving capabilities, initially developed for cars, could also produce a catwalk-walking robot. Consequently, the "NIO-XPeng-Li Auto" label was discarded, and XPeng was repositioned alongside Tesla for comparison.

This isn’t just about one automaker proving itself; it’s a tangible reflection of the market’s broader reassessment of China’s technological prowess.

**IRON Lifts XPeng’s Stock** XPeng is undergoing a fresh market reevaluation. By November 11 (U.S. time), its U.S. shares had risen 7.80% to $28.07, following a 15% surge the previous day in both Hong Kong and U.S. markets. The rally was fueled by the debut of IRON, a 178 cm, 70 kg humanoid robot with 82 degrees of freedom, biomimetic muscles, and full-coverage flexible skin, capable of walking naturally. Its human-like movements sparked widespread doubt, with many suspecting a human performer inside.

IRON is also the first humanoid robot to announce the use of all-solid-state batteries. Powered by three in-house "Turing" AI chips with a combined 2250 TOPS of computing power, it runs XPeng’s first-gen physical-world AI model, enabling advanced interaction, mobility, and dialogue.

Skepticism erupted online, with critics questioning how a Chinese company could achieve such fluid motion. He Xiaopeng responded within 24 hours, releasing videos showcasing IRON’s mechanical structure. On November 7, XPeng took it further by cutting open IRON’s leg during operation to reveal its inner workings—while the robot continued walking.

He likened the situation to a scene from *Let the Bullets Fly*, where a character cuts open his stomach to prove a point. He emotionally noted, "People don’t believe advanced robotics can come from a Chinese company... This skepticism held us back, just like doubts about Chinese EVs a decade ago."

Through these demonstrations, XPeng aimed to redefine itself. IRON embodies XPeng’s push into "physical AI," showcasing capabilities that transcend its identity as an automaker. The market responded positively: by November 12, XPeng’s U.S. market cap exceeded $26 billion, while its Hong Kong valuation surpassed HK$200 billion.

Top institutions like Morgan Stanley and Deutsche Bank upgraded their outlooks, citing XPeng’s shift from EV maker to AI-driven tech contender. Even Tesla CEO Elon Musk praised XPeng’s robot, stating, "Tesla and Chinese companies will dominate this market."

**Commercialization Remains the Ultimate Test** IRON’s debut has been likened to a "DeepSeek moment" for Chinese humanoid robotics, challenging the myth that China can’t produce cutting-edge robots. Over the past year, Chinese humanoid robots have appeared everywhere—from marathons to factory floors—fueling unprecedented market excitement.

IDC predicts the global robotics market will exceed $400 billion by 2029, with China driving nearly half of that growth. However, challenges persist. Goldman Sachs reported that while suppliers are expanding capacity, no major orders or production timelines have been confirmed. Reflecting this uncertainty, robotics-related stock indices dipped for three consecutive trading days post-IRON’s reveal.

IDC’s China robotics analyst Li Junlan emphasized that while China has the industrial and technological foundation for embodied AI, commercial application—not just cutting-edge tech—will determine leaders. Companies are exploring diverse paths: Tesla plans to deploy 10,000 Optimus robots in its factories, while XPeng targets commercial settings like retail guidance and industrial inspections by 2026, with mass production slated for late 2026.

He Xiaopeng believes humanoid robots will eventually see an "iPhone 4 moment," with a $20 trillion market potential—twice that of cars. He projects annual sales exceeding 1 million units within a decade. As the race for embodied AI heats up, XPeng and its peers are striving for transformative breakthroughs.