Xpeng to Launch Narrow-Road Driver-Assist System In 2026 With Volkswagen As First Automaker Partner: Report

• According to a CNBC report, Xpeng CEO Xiaopeng He claimed the new driver-assist system would need less human intervention than Tesla’s Full Self-Driving (FSD) system.
• Earlier in the day, Xpeng also announced the launch of three robotaxi models in 2026, as it aims to compete with Tesla and establish a presence in the autonomous mobility sector.
• The company stated that the new model can interpret hand signals from traffic controllers and react to traffic light countdowns as they transition from red to green.

Xpeng reportedly announced at its 2025 AI Day on Wednesday that it will start rolling out a new driver-assist system aimed at navigating narrow roads by the first quarter of 2026, with Volkswagen as its first client and as it opens the system to other carmakers.

According to a CNBC report, Xpeng noted that the new system is designed to allow vehicles to navigate narrow streets autonomously with ease, essentially minimizing the need for driver input.

Retail sentiment on Xpeng improved to ‘extremely bullish’ from ‘bullish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

U.S.-listed shares of Xpeng were down nearly 4% in early trading.

CEO’s View

The report added that Xpeng CEO Xiaopeng He claimed the new driver-assist system would need less human intervention than Tesla’s Full Self-Driving (FSD) system, and completed a test route several minutes quicker.

“Next month I will go to the U.S. to compare [Xpeng’s latest system] to FSD again,” He said in Mandarin, translated by CNBC.

Features Of The New Model

The company stated that the new model can interpret hand signals from traffic controllers and react to traffic light countdowns as they transition from red to green.

The report noted that Tesla has struggled to get Beijing’s approval to roll out FSD in mainland China, while Xpeng started releasing its driver-assist systems in early 2023.

Earlier in the day, Xpeng also announced the launch of three robotaxi models in 2026, as it aims to compete with Tesla and establish a presence in the autonomous mobility sector.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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