Tesla’s annual shareholder meeting approved CEO Elon Musk’s $1 trillion compensation. Musk discussed physical AI initiatives like humanoid Optimus and robotaxis. He mentioned plans for a massive fab factory to meet chip demand for the AI revolution.

Xpeng Motors held an AI day showcasing Turing chips, humanoid IRON, VLA 2.0, and robotaxis. They announced mass production of a flying car. Barron’s discussed Xpeng becoming the “next Tesla,” sparking debate over its potential.

Chinese EV companies like BYD, Xpeng Motors, and Nio are challenging Tesla globally, surpassing it in deliveries. BYD is outselling Tesla in Europe despite EU tariffs on Chinese EVs. Xpeng Motors has faced allegations of copying Tesla, including a lawsuit over stolen Autopilot source code.

Xpeng’s autonomous driving tech is praised in China, needing less human intervention than Tesla’s FSD. CEO plans to compare it to Tesla’s system in the U.S. China and the U.S. are competing in physical AI dominance, but demand projections are uncertain.

It’s too early to declare a winner in physical AI. China’s support for new-age companies may challenge Tesla. Xpeng Motors could be a strong contender in the physical AI race. Analysts are bullish on the stock post-AI day.

Read more at Yahoo Finance: Can Xpeng Motors Eat Tesla’s Lunch in Humanoid Robots the Way BYD Did in EVs?