XPeng shares first images of its new G7 SUV, which will start at an ultra-competitive price of $34K

Mere hours after images emerged of a seemingly new Tesla Model Y performing winter testing in China, XPeng Motors unveiled a new SUV called the G7 that will compete directly with the world’s best-selling BEV.

Although they are based in separate countries, XPeng and Tesla are often compared. When XPeng Motors first emerged in China, its initial BEVs were criticized for closely resembling Tesla models. At one point, Tesla even tried to sue XPeng, claiming it stole its Autopilot source code. However, that lawsuit was inevitably settled between the former employee and Tesla in 2021 and had no litigious involvement from XPeng whatsoever.

While Tesla remains the global leader in BEV sales, XPeng Motors has quickly risen to prominence as it continues to expand outside of China and into new markets like Europe, debuting new and exciting models along the way.

One of those models includes the G6 SUV, which launched in the summer of 2023 and is reportedly due for a 2025 facelift that ditches LiDAR sensors in favor of pure vision cameras, similar to Tesla. Recent spy images leaked show what appears to be a revamped Tesla Model Y performing winter testing, and the new look is arguably similar to an XPeng G6. Have a look for yourself.

Hours after those Model Y images leaked, XPeng Motors decided to share images of its next SUV it is calling the G7, which, like the G6, appears to be another direct competitor to Tesla’s best-selling SUV.

XPeng unveils G7 as “most competitive SUV in 2025”

It could just be a coincidence, but XPeng Motors appears to have tried to steal some of Tesla’s thunder in the EV news world by suddenly unveiling this new G7 SUV out of nowhere. During a recent internal letter to staff outlining the company’s goals for 2025 and beyond, XPeng founder, chairman, and CEO He Xiaopeng said the automaker intends to launch a new or facelifted model each quarter this year, so perhaps it is not that big of a surprise.

The images above are our first look at the G7 SUV, posted by XPeng on Weibo earlier today with the following caption:

Xiaopeng G7 may be the most powerful SUV in the 250,000-level this year! With high appearance, full AI configuration, and leading technology, it is still a space monster and is definitely the first choice for family users!

The 250,000 level referenced in the post pertains to the RMB pricing of the SUV segment, which translates to about $34,100. That means we should expect the XPeng G7 to launch right around that mark. For comparison, current RWD versions of the Tesla Model Y start at RMB 249,900 in China but can go as high as RMB 354,900 ($48,400) for the AWD Performance variant.

The G7 SUV is expected to be positioned between the previously mentioned G6 and G9 XPeng SUVs and is a another clear competitor to Tesla in China.