Xpeng Is Betting Big on Physical AI. Here’s Why You Should Buy XPEV Stock.

Xpeng (XPEV), one of China’s leading electric vehicle (EV) companies, recently shared the stage at the CVPR conference with top companies like Tesla (TSLA) and Nvidia (NVDA). At the event, the company showcased its progress in the world of physical AI — artificial intelligence controlling real-world devices. For those not familiar with what this means, physical AI can be anything from your car steering itself to humanoid robots using AI to go about work.

Xpeng’s primary focus at the last two CVPR conferences has been its in-house AI model called VLA 2.0. The difference is that VLA 2.0 was just being introduced in 2025, while in 2026 it is already being deployed at scale. VLA 2.0 is essentially the AI brain for Xpeng’s smart vehicles; it studies how humans drive and learns what needs to be done on the road, from switching lanes to braking. With VLA 2.0 being mass-deployed, Xpeng is now challenging Tesla’s Full Self-Driving (FSD) software, which has been the leading AI software module in the smart vehicle category.