One of Tesla’s Chinese rivals has a unique strategy for building its humanoid robot: make it huggable

• Chinese Tesla rival Xpeng said it plans to start mass production of its robot, called Iron, next year.
• The EV startup’s CEO said Xpeng built Iron to be so “human-like” that people are comfortable hugging it.
• Tesla is also set to begin production of its Optimus robot in 2026.

A Chinese Tesla rival is betting on huggability to take on Elon Musk’s Optimus robot.

EV startup Xpeng unveiled the latest version of its humanoid robot, called Iron, earlier this month, and CEO He Xiaopeng said the company wanted its bipedal bots to be “highly human-like.”

In an earnings call on Monday, he told analysts that Xpeng had found adding fake muscles and “bionic skin” to Iron made people more comfortable touching and even hugging the robot.

“This is very exciting because traditional robots really were not that attractive and appealing for human beings to give them a hug,” said Xiaopeng.

Unlike many rival humanoid robots, Iron has a distinctly human-like physique, with Xpeng showcasing male and female variants. Users will be able to customize the robot with different body types, the company said.

In one demo at the unveiling, Xpeng employees even cut into the robot’s flexible “skin” to demonstrate that there was no one inside.

Speaking to analysts on Monday, Xiaopeng said Xpeng aims to sell 1 million Iron robots a year by 2030, with mass production set to begin by the end of 2026.

The auto executive, who predicted that the market for humanoid robots would ultimately be larger than the car market, added that he expects humanoid robots to be initially used in retail and as tour guides. Xpeng plans to put Iron to work in its stores next year, he said.

The production ramp-up is the latest sign that Tesla’s biggest robotics rival could come from China.

Musk’s automaker is preparing to begin mass production of its own humanoid robot, Optimus, by the end of 2026. Musk has predicted Optimus could be the biggest product ever, and Tesla’s AI chief told employees that 2026 will be the “hardest year” of their lives.

Founded in 2014, Xpeng has been one of the most successful startups to battle Tesla for a piece of China’s red-hot EV market.

The Guangzhou-based company has smashed sales records this year and is close to becoming profitable.

Xpeng executives said on Monday the EV startup will launch seven new vehicles next year, including three robotaxi models, and the company also plans to begin mass production of its $280,000 flying car in 2026.