$30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley

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3. XPeng Inc. (NYSE:XPEV)

Number of Hedge Fund Investors  in Q1 2024: 16

XPeng Inc. (NYSE:XPEV) is a Chinese electric vehicle company. It competes directly in the humanoid robot industry by having produced a prototype robot called the PX5 robot. Unlike Western firms which have to be quite careful with cost control, XPeng Inc. (NYSE:XPEV) benefits from its Chinese roots which can allow it to leverage a low cost industrial manufacturing base and cheap labor to reduce the humanoid bill of materials. This reduction, as outlined in our intro, is key for the industry, and XPeng Inc. (NYSE:XPEV) further benefits from the sizeable Chinese manufacturing industry to generate demand for its products. However, trade tensions between the West and China could leave XPeng Inc. (NYSE:XPEV) restricted to China, and make it miss out on the substantial revenue and demand from Western firms as they seek to fill out labor shortages with robots.

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