Shortly after the product launch, Xpeng announced that over 10,000 firm orders for the Mona M03 had been received within 52 minutes.

Xpeng (NYSE: XPEV) has officially launched the M03, the first model in its Mona lineup, to compete with Tesla’s (NASDAQ: TSLA) Model 3 electric sedan at half the price.

The Chinese electric vehicle (EV) maker unveiled the Mona M03 electric sedan at a product launch event in Beijing today, with a starting price of 119,800 RMB (US$16,820), significantly lower than the roughly 135,900 RMB previously quoted by Xpeng.

The Mona M03 is Xpeng’s cheapest model on the market, and its pricing system seems to be clearly modeled on the Tesla Model 3, which the company hopes to use to boost sales.

The Mona M03 has already seen good initial acceptance. Shortly after the product launch, Xpeng announced that over 10,000 firm orders for the model had been received within 52 minutes.

Xpeng offers 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 name, the number indicates the battery range and Max stands for the most powerful intelligent driving function.

The price is half that of the Model 3, a Tesla model that is currently offered in China in three variants – rear-wheel drive, long-range all-wheel drive and high-performance all-wheel drive – with prices starting at RMB 231,900, RMB 271,900 and RMB 335,900 respectively.

Mona is the result of Xpeng’s acquisition of ride-sharing giant Didi Global’s electric vehicle business in August 2023.

The first model in the Mona series is called M03 and is intended to be a tribute to the Tesla Model 3, said He Xiaopeng, chairman and CEO of Xpeng, when he unveiled the model on July 3.

The Xpeng Mona M03 is 4,780 mm long, 1,896 mm wide and 1,445 mm high, with a wheelbase of 2,815 mm.

For comparison, the latest Tesla Model 3 is smaller overall 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 just one engine and accelerates from 0 to 100 kilometers per hour in 7.8 seconds for the entry-level version and 7.4 seconds for the other two variants.

The model’s lower price is due to the use of smaller batteries: 51.8 kWh for the entry-level variant and 62.2 kWh for the other two variants. Batteries usually make up the majority of the cost of an electric vehicle.

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 achieve a longer range with relatively small batteries, Xpeng optimized the design of the Mona M03 and gave it a drag coefficient of 0.194 Cd. According to the company, this is the lowest value in the world among mass-produced all-electric compact sedans.

Xpeng’s goal is to optimize energy management. The Mona M03 consumes 11.5 kWh of electricity per 100 kilometers, He said at today’s launch.

Unlike some other Xpeng models, the model does not have LiDAR.

Its intelligent driving system includes a standard version that supports pilot-assisted driving on highways and a more powerful Max version that additionally supports pilot-assisted driving on city streets.

Xpeng will begin delivering the Mona M03 in September, but deliveries of the most expensive Max variant will begin after the Spring Festival holiday in late January to early February 2025.

For Xpeng, the Mona M03 is key to increasing sales, as sales have been mediocre so far this year.

Xpeng delivered 11,145 vehicles in July, 1.24 percent more than the previous year and 4.47 percent more than in June.

This was Xpeng’s fifth consecutive increase in monthly shipments, but still only about half of the more than 20,000 monthly shipments in the fourth quarter of last year.

Xpeng is confident that Mona’s first model will be a superstar in the Class A all-electric vehicle market, the company’s management said in a conference call on May 21.

The company is confident of posting a significant year-on-year increase in monthly sales in the fourth quarter of the year, supported by the Mona model and another B-segment electric model, management said. This B-segment model is said to be the Xpeng P7+.

Despite the Mona M03’s competitive pricing, Xpeng does not seem to have completely sacrificed its profits to gain market share.

All variants of the Mona M03 are priced to generate profits, He told local media after today’s product launch event.

(1 USD = 7.1241 RMB)

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