Xpeng plans to separate its robotics business into Dogotix as a standalone operation and raise about $900 million from new and existing investors, giving the unit an independent valuation and financing structure while allowing the Chinese electric vehicle maker to retain control.
Dogotix Set for $5 Billion Pre-Money Valuation
Xpeng said in a Hong Kong Stock Exchange filing that Dogotix, investors and executive subscribers have entered into a conditional share purchase agreement. The transaction values Dogotix at $5 billion before the financing.
Dogotix is expected to receive approximately $900 million from the subscription. Xpeng’s wholly owned Xpeng Dogotix subsidiary will contribute $200 million, while external investors are expected to provide $600 million.
Companies controlled by Xpeng Chairman and CEO Xiaopeng He and Co-President Brian Gu will contribute a combined $100 million for ordinary shares.
The financing is being led by IDG Capital, with participation from Gaorong Ventures and strategic support from Tencent and Alibaba.
Dogotix may also issue up to $15 million in preferred shares to an additional investor at the same price within four months of the agreement.
Xpeng to Retain Control After Carve-Out
Dogotix will cease to be a wholly owned Xpeng subsidiary once the subscription and equity incentive plan take effect. Excluding additional investments, warrant exercises and certain incentive-share transfers, Xpeng is expected to hold approximately 81.97% of Dogotix.
Companies controlled by He and Gu will receive warrants allowing additional investments of up to $400 million and $100 million, respectively. The potential $500 million in warrant investments is not included in the current $900 million financing.
If the additional investment is completed, all warrants are exercised and the 15% equity incentive mandate is fully utilized, Xpeng’s ownership could fall to approximately 68.41%.
Dogotix would nevertheless remain a controlled subsidiary of Xpeng, with its financial results continuing to be consolidated into Xpeng’s accounts.
The transaction remains subject to closing conditions. Xpeng said none of those conditions had been satisfied or waived when the announcement was made.
Robotics Business to Operate Independently
Under the carve-out, Xpeng plans to transfer assets, intellectual property, personnel, systems and operational resources primarily associated with its robotics operations to Dogotix.
The process is generally expected to take up to 18 months after external investors complete their first tranche of share subscriptions. Once completed, Dogotix is expected to have the personnel and infrastructure required to operate independently.
The business covers research, development, manufacturing, licensing and commercialization of general-purpose robotic systems. Its portfolio includes humanoid, bipedal, quadrupedal and tracked robots.
Xpeng’s automotive operations and its flying vehicle, robotaxi, chip and other Physical AI businesses are excluded from the carve-out.
Funding to Support Robotics Expansion
Dogotix plans to use the financing for business expansion, capital expenditure, research and development, commercialization and general working capital.
Xpeng said bringing in specialist investors will allow the market to assess the robotics operation separately while reducing the financial burden of robotics research, development and commercialization on the broader group.
Investors will also receive redemption rights. If Dogotix does not complete a qualified initial public offering within seven years after the first tranche of subscriptions, investors may require Dogotix, certain major subsidiaries or Xpeng to repurchase their shares.
The redemption price will be the higher of the investment cost plus interest compounded annually at 8% or 120% of the investment cost, together with any declared but unpaid dividends.
Xpeng Targets Humanoid Robot Production
Xpeng unveiled its next-generation Iron humanoid robot in November 2025. The robot uses three internally developed Turing AI chips with combined computing power of 2,250 TOPS.
The company plans to begin mass production of Iron by the end of 2026 and raise monthly production capacity to more than 1,000 units. Xpeng has said the robots could then be deployed in China and overseas markets in 2027.
He said in June that he would also assume the role of CEO of the robotics business. Xpeng subsequently reorganized its robotics center and created nine second-tier departments.
The Dogotix financing announcement came shortly before Xpeng was scheduled to release its second-quarter results. The company delivered 103,295 vehicles during the quarter, an increase of 64.8% from the first quarter.