Just weeks after Tesla’s China release of the cheaper standard-range, rear-wheel-drive Model Y, the company is still facing increased competition in the world’s largest auto market, where local electric vehicle (EV) company Xpeng Motors has released pricing for a new vehicle that undercuts Tesla’s lineup.
Xpeng Motors unveiled its P5 electric sedan in April, and buyers can purchase the vehicle for as low as 160,000 yuan ($24,694 USD), making it cheaper than Tesla’s Model 3, which starts at 250,900 yuan ($38,724 USD), according to CNBC.
The P5 sedan is the company’s third production vehicle, which comes after the release of the Xpeng P7, features six variants total, ranging from 160,000 to 230,000 yuan ($24,694 to $35,498 USD).
Chinese Tesla Rival Xpeng to Raise Nearly $2 billion with Hong Kong IPO https://t.co/Zoau6A7Aa1
— TeslaNorth.com (@RealTeslaNorth) June 24, 2021
In addition to the affordably-priced Xpeng P5, the company’s P7 sedan starts at 229,900 yuan ($35,483 USD) after subsidies, which is still priced lower than the Tesla Model 3. The Tesla Model Y starts as low as 276,000 yuan ($42,613 USD) with the company’s newest release, though it’s still more expensive than any of Xpeng’s offerings.
It’s worth noting Xpeng has been accused of stealing an older version of Tesla’s Autopilot code and using it in the company’s own driver-assist software.
There’s growing competition in China, where companies like Xpeng, Li Auto, NIO, and BYD are increasing production and delivery volumes each quarter. Let’s wait and see what will happen when Tesla introduces its more affordable compact sedan soon.
