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

Chinese automaker Xpeng has launched a new electric SUV in Europe, the L03, priced well below Tesla's Model Y — the best-selling EV in that segment. In Germany it starts at €35,600 versus roughly €38,970 for the Model Y, and in Norway the gap is even bigger, with the L03 starting around $10,400 cheaper. The L03 comes with features like a heat pump (which both heats and cools efficiently), heated and ventilated seats, and a panoramic roof as standard, plus faster charging than the base Model Y. Deliveries begin in the fourth quarter of this year.

This is a European story, not a US one. Because of tariffs on Chinese-made vehicles, Xpeng has no way to sell the L03 in the US, so American buyers won't be able to cross-shop it against the Model Y or other EVs here. Converting the European price to dollars (after stripping out European sales tax) puts the L03 in the same range as cars like the Chevy Equinox EV, which starts near $35,000 in the US.

For a homeowner thinking about an EV purchase, the direct takeaway is limited: this pricing fight is playing out in European markets, and it does not change what's available or what anything costs in the US right now. If you're considering an EV and also thinking about charging it at home, pairing it with home solar remains a separate way to lower your cost per mile, regardless of which car you eventually choose.