Xpeng Motors Surges 6.5% as New Budget EV MONA M03 Stuns with 10,000 Orders in Just One Hour
Xpeng Motors’ US-listed shares jumped 6.5% following the unveiling of their latest game-changer: the MONA M03, an all-electric compact sedan under their new budget-friendly brand. In a spectacular debut, Xpeng received over 10,000 non-reservation orders within the first hour—a testament to the car’s immediate popularity.
MONA M03: Affordable Innovation for the Masses
Xpeng’s MONA M03 is making waves with its competitive pricing, undercutting popular models like Tesla’s Model 3 by offering similar assisted driving technology at half the cost. This budget-friendly EV is set to shake up the market, potentially pulling customers away from top sellers like the BYD Qin and Nissan Sylphy.
A Camera-Only Future: Xpeng’s Vision for Autonomy
Breaking away from the norm, Xpeng has opted to remove lidar from the MONA M03, instead relying on an array of 20 affordable sensors, including seven exterior cameras, to deliver advanced safety features like lane-keeping assist. This move could accelerate the adoption of camera-based autonomy, a bold step as most luxury EVs priced above RMB 200,000 ($28,060) still depend on lidar for 3D navigation.
Entry-Level Excellence: Packed with Features at an Unbeatable Price
Priced at RMB 119,800 ($16,808), the MONA M03 is designed to appeal to young, tech-savvy, budget-conscious drivers. Despite its affordability, the car doesn’t skimp on features. The top-tier version, costing RMB 155,800 ($21,859), will offer full autonomous driving on Chinese roads by next spring—making it the only vehicle in its price range to boast such advanced capabilities.
Aiming at China’s Youth: The Ultimate First Car
Targeting the younger generation, the MONA M03 offers a sleek design, spacious interior, and efficient energy consumption. With a drag coefficient of just 0.194 and energy use of 11.5 kWh per 100 km, this 4.8-meter-long sedan combines style with practicality. Powered by a BYD-sourced lithium iron phosphate (LFP) battery, it delivers a range of up to 620 km (385 miles) on a single charge and can sprint from 0 to 100 km/h in just 7.4 seconds.
A Simple Interior with a Focus on Functionality
While the interior of the M03 is minimalistic, it’s functional. A 15.6-inch center screen serves as the car’s command center, but those wanting a traditional dashboard screen will need to pay an additional RMB 599. Despite this, Xpeng promises that the car’s core features are more than enough to satisfy its target market.
Context: A Bold Move in a Competitive Market
Xpeng’s aggressive pricing strategy for the MONA M03 could trigger a sales surge, positioning it to outpace competitors like Xiaomi’s SU7. With hopes of selling 100,000 units annually, Xpeng’s CEO He Xiaopeng is confident that this new model will be a major success. However, analysts from Jefferies caution that the gross margin could remain in the low single digits as the company scales up production.
In the race to dominate China’s EV market, Xpeng’s MONA M03 is a bold bet—one that could very well pay off, redefining what’s possible for budget-friendly electric vehicles.