New Tesla competition.

This new Mona M03 EV sedan from Xpeng is another Tesla Model 3 competitor in China. And another headache for Tesla.

Xpeng is a very successful Chinese manufacturer created just 10 years ago. They already sell cars in some European countries, Australia and Singapore.

This new Xpeng Mona M03 sedan is launching this month in its home market of China. At 188 inches long, it is about 2 inches longer than a Tesla Model 3. The main difference in packaging is that it is a real hatchback. It also has an interior that seems quite a bit more upscale than the Tesla. It uses a battery pack from BYD in 2 different sizes. A 51.8kWh version with a 320-mile range or a larger 62.2kWh pack with a 387-mile range. (EPA numbers would be about 20% less).

I think its most amazing feature could be its price.

While the most basic Tesla Model 3 RWD starts at around $32,500 in China. The new Xpeng Mona M03 is expected to start at $18,000. And up to $22,000. That is not just a price advantage but is a third less expensive!

Even if it was ever sold in the US at twice the price, it would still be cheaper than the Model 3.

And this is just one of the many new Chinese EVs that are coming out almost every single week. If you think Tesla is having a hard time in the US, China is where their real nightmare is a reality. New models with new designs and features while Tesla is just selling the good old Model 3 and Model Y with a slight refresh every 6 years. Or a new color option once in a while for $2000 or even $3000 extra.

It will take much more than another red or another grey to compete in this very aggressive world. No matter how advanced your cars were when they came out.