Beautiful Virgin Islands

Sunday, Mar 22, 2026

Chinese Tesla challenger’s new car costs a third of the price of a Model S

Xpeng’s P7 is now available to pre-order as the company aims to take on Tesla, which Xpeng’s founder called overestimated in China

This article originally appeared on ABACUS

Can’t afford a Tesla and not willing to drive around in the company’s new eccentrically futuristic Cybertruck? Well, China has another option for you at a much cheaper price.

Guangzhou-based Xpeng is one of the country’s EV startups hoping to become the “Chinese Tesla,” and it has just started pre-orders of its newest model, the P7. The sport sedan is selling for prices ranging from 270,000 yuan to 370,000 yuan (US$38,400 to US$52,600).

That makes the P7 nearly a third of the price of a Tesla Model S in China. And it already has more than 15,000 pre-orders, according to Xpeng.

The timing is interesting. Just 10 days earlier, Tesla flaunted its first vehicle made in China -- a more affordable Model 3 priced at 355,800 yuan (US$50,500). Tesla has been building its first Gigafactory outside of the US in Shanghai, where it just recently started producing its first vehicles.

“We believe China could become the biggest market for Model 3,” the company said in its third-quarter earnings report.

But Tesla faces competition from hundreds of EV makers in China, including Tesla wannabes like Tencent-backed NIO and WM Motors. Xpeng has been particularly irksome to Tesla, and not just because the company’s cars bear a striking resemblance to Tesla’s designs.

Xpeng is one of the country’s most prominent EV startups to have sprung up in recent years thanks to Beijing’s push to get more electric cars on the streets. The company’s backers include Alibaba, IDG Capital and smartphone maker Xiaomi. The five-year-old company recently raised US$440 million in funding.

(Abacus is a unit of the South China Morning Post, which is owned by Alibaba.)

The similarities between the two companies gained wider attention when Tesla sued its former employee Guangzhi Cao in March for stealing trade secrets. Tesla claimed Cao passed the stolen information to Xpeng, his new employer. Tesla said Xpeng “transparently imitated Tesla’s design, technology, and even its business model.”

Tesla also pointed out that Xpeng introduced features similar to its own Autopilot, called X-Pilot, and it hired former Tesla engineers who had worked on the driver assistance feature that Tesla “spent hundreds of millions of dollars” developing.

Although Cao admitted he uploaded Tesla’s Autopilot-related source code to his own drive, he denies that the files included trade secrets. Xpeng said it has nothing to do with the incident. Cao maintains he didn’t transfer Autopilot information to Xpeng.

Tesla is currently facing financial pressure, having lost more than US$1 billion in the first half of the year. EqualOcean analyst An Feng said Tesla is unlikely to reduce the price of the Model 3 made in China in the short term. This could open the door for Tesla wannabes like XPeng to capture price-conscious Chinese consumers.

Xpeng founder and CEO He Xiaopeng mused on Weibo in March that most people underestimate Tesla's challenge to traditional cars while also overestimating Tesla's competitiveness in China.

How Weibo became China’s most popular blogging platform

But Xpeng Motors President Brian Gu pointed out in an interview with CNBC that Xpeng and Tesla are not competing in the same price range.

“Xpeng is apparently betting on consumers in the so-called new first-tier cities, while Tesla is trying to meet demand from the country's upper-middle class in the major metropolises,” EqualOcean analyst Ivan Platonov said. While the first group prefers a good deal, urbanites in large cities like Beijing and Shanghai are more likely to go for the brand, he added.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
UK Considers Lower Speed Limits to Reduce Fuel Use Amid Escalating Energy Crisis
UK Borrowing Costs Surge to Post-Crisis High as Markets React to Inflation and War Risks
UK Government Prepares Emergency Economic Measures as Iran Conflict Fuels Financial Risks
Meningitis B Outbreak in the UK Raises Urgent Health Warnings as Cases Surge
Iran Issues Stark Warning to Britain Over US Base Access Amid Expanding Conflict
United Kingdom Authorizes US Strikes from British Bases as Iran Threatens Key Shipping Routes
Reform UK Suspends Scottish Candidate Following Financial Misconduct Allegations
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
×