Xpeng’s new L03 undercuts Tesla Model Y by up to $10,000 in Europe

Xpeng launched its new L03 electric SUV-coupe in Europe this week with a starting price of €34,990 — undercutting the Tesla Model Y by roughly €3,400 in Germany and by around $10,000 in Norway.

The pricing puts a well-equipped 4.65-meter electric SUV directly under Tesla’s best-seller in its highest-volume segment, and deliveries start in the fourth quarter.

Xpeng unveiled the L03 at its Global Brand Event in Munich this week, opening orders across more than 60 markets simultaneously — the Chinese automaker’s biggest global launch to date.

We first covered the L03 in May when it debuted in China under the Mona sub-brand at around 150,000 yuan (~$20,500). Now we have the European pricing, and it is aggressive.

The fully electric L03 starts at €34,990 in France and Belgium, €35,600 in Germany, €36,600 in Austria, and €36,990 in the Netherlands. Outside the eurozone, it opens at 299,900 kroner in Norway, 239,995 kroner in Denmark, and 399,900 kronor in Sweden.

In Germany, the L03 comes in four battery-electric variants, all with LFP cells:

Despite using a 400-volt architecture, the L03 charges at up to 236 kW and goes from 10 to 80% in 20 minutes. A heat pump, 6 kW vehicle-to-load, heated and ventilated front seats, and a panoramic roof are standard. The top Ultra trim adds two of Xpeng’s Turing AI chips running the VLA 2.0 driver-assist system we tested earlier this year.

A range-extender version, which Xpeng calls the L03 Power X, follows this fall from €38,600 in Germany with a claimed total range of up to 1,000 km.

How it compares with the Model Y

Tesla responded to slumping European sales by launching the stripped-down Model Y Standard at €39,990 last year. Xpeng just went under it — with more standard equipment.

As of today, Tesla’s German configurator lists the Model Y from €38,970 following a price adjustment last month. That makes the L03 €3,370 cheaper. The base Model Y Standard counters with more range (534 km WLTP vs 445 km), but the L03 charges faster (236 kW vs 175 kW peak), and its €38,600 Long Range trim nearly matches the Tesla’s range while still costing less.

The gap is widest in Norway, Tesla’s strongest market in Europe per capita. Tesla lists the Model Y from 399,990 kroner (~$41,500), while the L03 starts at 299,900 kroner (~$31,100) — a difference of roughly $10,400.

That Norwegian price is no accident: Norway began phasing out its EV VAT exemption this year, applying 25% VAT to any portion of the purchase price above 300,000 kroner. At 299,900 kroner, the L03 ducks under the threshold by exactly 100 kroner.

What that means in US dollars

European prices include VAT — 19% in Germany, 20% in France — so they aren’t directly comparable to US MSRPs. Strip the tax out, and here is what the L03 costs in US terms at current exchange rates:

In other words, Xpeng is selling the L03 at the equivalent of a $33,000-$34,000 EV in the US market. For context, the Tesla Model Y Standard starts at $39,990 in the US before a $1,390 destination fee, and Tesla’s own ex-VAT price in Germany works out to about $37,500 — closely mirroring its US pricing.

The closest US equivalent to the L03’s positioning is the Chevy Equinox EV, which starts at $34,995 — but the Chevy tops out at 150 kW charging, while the L03 offers 236 kW, 285 kW dual-motor options, and Level 2+ driver assistance hardware.

American buyers won’t get the chance to cross-shop it. With current US tariffs on Chinese vehicles, Xpeng has no path into the US market — this fight is playing out in Europe instead, where Xpeng registered more than 4,600 vehicles in June, a fourth straight monthly record, according to industry registration data.

Electrek’s Take

This is the moment the Chinese price war truly arrives in Europe’s highest-volume EV segment.

Tesla’s Model Y Standard was supposed to be the defensive move — a cheaper, decontented Model Y to hold the line against Chinese competition. Xpeng just priced under it with a car that includes a heat pump, ventilated seats, a panoramic roof, and faster charging as standard, even after paying EU tariffs on Chinese-built EVs.

The counterargument is execution. Xpeng’s European service network is still thin, deliveries don’t start until Q4, and the L03’s advanced driver-assist features remain gated by European regulators until likely next year. Tesla still has the Supercharger network, the brand, and local production in Berlin — which matters, since Xpeng is reportedly looking at European production precisely to close that gap and escape tariffs.

But the pricing math is now public, and it’s significant: even ex-VAT, Xpeng is offering Model Y-class hardware at $34,000 while Tesla charges $37,500-$40,000 for its base car on both continents. US buyers are insulated by tariffs, not by Tesla’s competitiveness. Europe is about to show us what the EV market looks like without that insulation.

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