Xpeng announced shortly after the launch event that the Mona M03 saw firm orders exceed 10,000 units in 52 minutes.
Xpeng (NYSE: XPEV) has officially launched the M03, the first model in its Mona lineup, to go head-to-head with Tesla's (NASDAQ: TSLA) Model 3 electric sedan, but at half the price.
The Chinese electric vehicle (EV) maker rolled out the Mona M03 electric sedan at a launch event in Beijing today, with a starting price of RMB 119,800 ($16,820), much lower than the roughly RMB 135,900 previously hinted at by Xpeng.
The Mona M03 becomes the least expensive of Xpeng's models on sale, with a pricing system that seems to be aimed squarely at the Tesla Model 3, as it hopes to revitalize sales.
The Mona M03 has already seen good initial acceptance, with Xpeng announcing shortly after the launch event that the model saw firm orders of over 10,000 units in 52 minutes.
Xpeng is offering the Mona M03 in three variants -- 515, 620 and 580 Max -- with starting prices of RMB 119,800, RMB 129,800 and RMB 155,800 respectively. In Xpeng's model naming, the number is the battery range and Max stands for the most powerful smart driving capability.
The price is half that of the Model 3, a Tesla model currently offered in China in three variants -- rear-wheel drive, long-range all-wheel drive, and high-performance all-wheel drive -- starting at RMB 231,900, RMB 271,900, and RMB 335,900, respectively.
Mona stems from Xpeng's August 2023 acquisition of ride-hailing giant Didi Global's EV business.
The first model in the Mona series is named the M03 and is meant to honor the Tesla Model 3, said He Xiaopeng, Xpeng's chairman and CEO, when he had the model unveiled on July 3.
The Xpeng Mona M03 measures 4,780 mm in length, 1,896 mm in width and 1,445 mm in height, with a wheelbase of 2,815 mm.
For comparison, the latest Tesla Model 3 is generally smaller, with length, width and height of 4,720 mm, 1,848 mm and 1,442 mm respectively, and a wheelbase of 2,875 mm.
The Mona M03 is powered by a single motor only and is capable of accelerating from 0 to 100 kilometers per hour in 7.8 seconds for the entry version and 7.4 seconds for the other two variants.
The model's lower price is due to the use of smaller battery packs, 51.8 kWh for the entry variant and 62.2 kWh for the other two variants. Batteries typically account for the bulk of an EV's cost.
Both battery packs for the Mona M03 are based on lithium iron phosphate chemistry, and the supplier is FinDreams Battery, the battery division of BYD (HKG: 1211, OTCMKTS: BYDDY).
To get longer range from relatively small battery packs, Xpeng optimized the design of the Mona M03 to give it a drag coefficient of 0.194 Cd, which the company said is the lowest in the world among mass-produced all-electric hatchback sedans.
Xpeng's goal is to get the best out of energy management, with the Mona M03 consuming 11.5 kWh of electricity per 100 kilometers, Mr. He said at today's launch.
The model does not feature any LiDAR, unlike some other Xpeng models.
Its smart driving system includes a standard version, which supports pilot-assisted driving on highways, and a more powerful Max version, which additionally supports pilot-assisted driving on urban roads.
Xpeng will begin deliveries of the Mona M03 in September, although deliveries of the highest-priced Max variant will begin after the Spring Festival holiday in late January to early February 2025.
The Mona M03 is key for Xpeng to boost sales, as it has had a lukewarm sales performance so far this year.
Xpeng delivered 11,145 vehicles in July, up 1.24 percent year-on-year and up 4.47 percent from June.
That was Xpeng's fifth consecutive sequential increase in monthly deliveries, but still only about half of the more than 20,000 monthly deliveries in the fourth quarter of last year.
Xpeng is confident that Mona's first model would be a superstar product in the class A all-electric car market, the company's management said in a May 21 earnings call.
The company is confident it would see significant year-on-year monthly sales growth in the fourth quarter of the year, helped by the Mona model and another B-segment EV model, its management said. That B-segment model would be the Xpeng P7+.
Despite the competitive pricing of the Mona M03, Xpeng doesn't seem to have completely sacrificed profits for market share.
All variants of the Mona M03 are priced to bring in profits, Mr. He told local media after today's launch event.
($1 = RMB 7.1241)
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