Beautiful Virgin Islands

Sunday, Dec 21, 2025

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
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
×