Xpeng co‑founder He Xiaopeng said at a Munich launch that China is close to producing a “killer” EV to beat Tesla’s Model Y, the world’s top‑selling electric SUV. He added, “I really believe in that.”

The Volkswagen‑backed startup unveiled its most affordable SUV, the L03, priced from €35,600, directly challenging the Model Y’s €39,990 base. Analyst Lei Xing called the L03 a potential “Model Y killer” but cautioned it is not the sole disruptor.

Beyond EVs, Xpeng plans flying cars and humanoid robots, and is negotiating a second European plant, likely in Germany. Volvo CEO Håkan Samuelsson warned the premium segment isn’t safe from Chinese rivals, placing Xpeng alongside BMW, Mercedes‑Benz, and Audi.

Xpeng will roll out its second‑generation VLA autonomous software in Europe from 2027, competing with Tesla’s FSD. While a technology gap remains, Xpeng’s AI head Xianming Liu said it’s hard to judge who leads.