Beautiful Virgin Islands

Monday, Apr 20, 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
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
UK Calls for Full and Toll-Free Access Through Strait of Hormuz Amid Rising Tensions
Starmer Signals Strategic Shift for Britain Amid Escalating Iran-Linked Tensions
UK Issues Firm Warning to Russia Over Covert Underwater Military Activity
OpenAI Halts Stargate UK Project, Casting Uncertainty Over Britain’s AI Expansion Plans
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
UK Deploys Military Assets to Protect Undersea Cables From Suspected Russian Threat
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
×