Xpeng responds to Tesla in China by lowering prices

Tesla has started a price war that has only just begun.

In recent weeks Tesla has turned the electric car market upside down, first it made an aggressive move in China, which resulted in an avalanche of more than 30,000 orders in a few days and days later announced significant price reductions in Europe.

If you want to know the current price of the Tesla Model 3 and Model Y in Spain do not miss the article we did about it, there we detail the new updated prices after the last price drop.

This move by Tesla put the competition in serious trouble, and is that the price of their electric cars were again far from the enemy to beat, Tesla.

Xpeng, the Chinese manufacturer, has been the first to respond to Tesla’s offensive, and it has taken just under two weeks to update the price of its electric cars with significant price reductions, although for the moment it has only been applied in China.

To give you some context, the Xpeng P7 sedan has been reduced by around $5,313, bringing the P7 to a price starting at just over $30,000.

The Xpeng G3i SUV has also seen its starting price reduced by just over $3,500, a similar discount to the Xpeng P5, with a starting price of $23,145.

We are convinced that this was the first move in response to Tesla by an automaker, but it won’t be the last.

For the moment in Europe there has been no response from the major European manufacturers, although it is certainly on the table to see what decision to take.

Tesla has an important advantage at this point and that is the large margin it has for each car sold (around 30%), which means it can afford to make large discounts while still making money, something that other manufacturers have very tight operating margins and a small price mismatch can make the sale of a car cost the manufacturer money.

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