A similar product line-up and focus on technology make Tesla and XPeng natural rivals, but the Chinese brand believes its roots will set it apart from its US counterpart.
Electric Cars
Relatively new electric-car brand XPeng says finding its feet in its home of China – the world's biggest and most competitive new-car market – gives it an advantage over arch-rival Tesla.
The brands have drawn natural comparisons in their range of electric vehicles, each backed by its own network of in-house fast-charging stations, and fitted with advanced semi-autonomous driving systems underpinned by cameras, not lidar.
But the Chinese company believes its origins – and need to be successful in China, arguably the world's toughest new-car market, before looking elsewhere – places it on stronger footings than Tesla.
“I think we’re both tech-driven companies who are very focused on future mobility – we’re not just satisfied simply being manufacturers, we want to set out to empower the technological revolution,” XPeng Vice-Chairman and President Dr Brian Gu told media including Drive.
“That’s why customers around the world see us as a similar competitor to Tesla.
“But what’s different is also very obvious. We have roots in China, we have developed a product that caters to the broadest customer segments that are from China first.
“We’ve also had our technology proven in the most fierce, competitive market in the world, that’s China, and that gave us the confidence to be able to compete around the world.
“Also, I think we can leverage a lot of benefits to being a Chinese technology company.
“We have the fastest, most innovate customer base that we are catering to, it means we are now leading and evolving as fast as we can because China market [moves so quickly].
“We are also leveraging the vast supply chain – which is efficient, which is comprehensive – that we can enjoy in China to develop the best products in the highest quality and also affordable price points.”
However, Dr Gu also downplayed the notion that XPeng could grow to take down Tesla, but instead said the brand wanted a more collaborative approach to selling its vehicles.
“Compare us to Tesla, but we want to be viewed as a partner with players around the world,” Dr Gu said.
“Tesla obviously excel at their own stores; they don’t rely on anybody.
“We feel like as a young Chinese brand, we want to make sure we partner with the best and strongest players in these different countries and align our interests more closely with them.
“That’s why we want to invest in local teams, local production, local R&D and other aspects, and be views as a brand that aligns closely with local customers, local partners and local governments as well.”
Other similarities between the two brands include the use of gigacasting in their manufacturing process that aids in production efficiency and – in theory – delivers stiffer, stronger, and lighter vehicles.
The Chinese and US brands are also pushing into human-like robotics, with the XPeng Iron and Tesla Optimus, that are designed for laborious and repetitive tasks.
However, there are key differences between the two brands, with XPeng’s product portfolio extending to a luxurious people mover in the form of the X9, as well as a large five-seat SUV in the G9.
Tesla meanwhile, has the Cybertruck and is working on the next-generation Roadster – neither of which XPeng has a current answer for.
Tesla also sells and distributes its own cars through its own stores, whereas XPeng has had to partner with importers and dealers to gain a foothold in markets outside of China.
Electric Cars Guide
Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
