Xpeng has introduced its new L03 electric SUV-coupe in Europe, opening orders across more than 60 markets simultaneously in what is its largest global launch to date. The launch positions the L03 as a direct competitor to Tesla's best-selling Model Y, with Xpeng pricing the L03 significantly lower. For example, in Germany, the L03 starts at €34,990, making it approximately €3,370 cheaper than the Model Y's starting price of €38,970. In Norway, the price gap is even wider, with the L03 starting at 299,900 kroner (approximately $31,100) compared to the Model Y's 399,990 kroner (approximately $41,500), representing a difference of about $10,400.
The L03 also comes with a strong set of features as standard, including a 400-volt architecture, up to 236 kW fast charging (10-80% in 20 minutes), a heat pump, 6 kW vehicle-to-load capability, heated and ventilated front seats, and a panoramic roof. Higher trims, like the Ultra, incorporate two of Xpeng's Turing AI chips that power its VLA 2.0 driver-assist system. Xpeng's CEO, He Xiaopeng, has stated that VLA performs better than Tesla's Full Self-Driving (FSD) on narrow roads and in difficult situations.
Despite its aggressive European pricing, Xpeng currently has no path into the U.S. market due to existing tariffs on Chinese vehicles. The L03's pricing in Europe, even when excluding VAT, positions it to offer Model Y-class hardware at approximately $34,000, while Tesla's base car in Europe and the U.S. ranges from $37,500-$40,000. Xpeng has also outlined a roadmap to Level 4 autonomous driving by 2028, with the L03 serving as the first global showcase for its SEPA 3.0 architecture and VLA 2.0 system.
