China was the biggest market for Tesla’s Model Y crossover in the first quarter of the year, helping it become the world’s top selling vehicle during the period.
Xpeng is pinning hopes on the new crossover to help turnaround sales, after the company reported lackluster May deliveries.
The price of the Xpeng G6 starts at 209,900 yuan ($28,882.01), compared with Tesla Model Y’s starting price of 263,900 yuan in China.
“We do admit the G6 pricing strategy created a unique product segment of BEV SUV at the 200,000-230,000 yuan range which attracts customers wanting an entry level mid-sized BEV SUV but cannot afford a Tesla model-Y or Xpeng P7i,” Citigroup analysts wrote in a note.
Citigroup analysts expect 10,000 monthly unit sales of the G6. Beijing’s 520 billion yuan tax break for new energy vehicle purchases is also expected to boost demand.
Tesla is expected to report as early as this weekend record global deliveries of 445,000 vehicles in April to June, according to average estimates of nine analysts polled by Refinitiv.
