Tesla's Optimus Vs. XPeng's Iron: The $5 Trillion 'Iron Man' Showdown
Surbhi Jain
Sun, May 4, 2025 at 3:36 AM GMT+9 3 min read
In the high-stakes world of humanoid robotics, two EV titans — Tesla Inc (NASDAQ: TSLA) and XPeng Inc (NYSE: XPEV) — are competitors transforming this sector.
A CNBC report suggests that Morgan Stanley projects a $5 trillion global market for humanoid robots by 2050. Facts reveal that the race to dominate this new frontier is shaping up to be less “Fast & Furious,” more “Iron Man” vs. “Iron Man.”
Optimus: Tesla’s FSD Tech-Powered Humanoid
Tesla’s Optimus is the better-known name, touted by Elon Musk as a full-stack humanoid built to tackle “mundane, repetitive, or dangerous tasks.” It stands at 5'8", powered by Tesla's Full Self-Driving (FSD) technology and integrates seamlessly with the company's vertically aligned AI and hardware ecosystem.
Optimus is expected to begin mass production this year, pending a little red tape from China. Rare earth export restrictions have thrown a wrench into Musk's plans, with the Chinese government scrutinizing the use of rare earth magnets amid geopolitical tensions. Musk insists the bots aren't weapons, but regulators still want assurances. That delay could slow down the thousands of Optimus units Tesla aims to build this year.
Iron: XPeng Blending Mobility & Robotics In China
Enter XPeng's Iron, a new contender fresh off its Shanghai Auto Show flex. Iron isn't just hype — it's already working the production lines at XPeng, assembling EVs with precision. Standing at the same height as Optimus but packing more digital muscle — 3,000 TOPS of processing power, to be exact.
XPeng is literally putting Iron to work while Tesla navigates diplomatic speed bumps.
XPeng's edge lies in real-world deployment. Iron draws on the same AI that powers XPeng's autonomous vehicles, creating an end-to-end smart ecosystem that blends mobility and robotics. Its proprietary "Turing AI chip" and "Tianji AIOS" power everything from spatial awareness to voice interaction. With 60 joints and 200 degrees of freedom, Iron walks and works with a fluidity that’s caught the industry's eye.
62.7M Jobs & A Trillion-Dollar Tech Transformation
Morgan Stanley calls Tesla a top potential winner due to its full-stack integration, but XPeng's Iron is proving it can punch above its weight. Both companies are chasing a future where humanoids take over not just factories but households and retail spaces. With projections of 62.7 million jobs replaced by robots by 2050 and a billion bots in use, this isn't science fiction — it's a trillion-dollar tech transformation.
So, who will build the next “Tony Stark” suit? Tesla may have the brand and brain trust, but XPeng is putting boots — or at least, metal feet — on the ground first.
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