Shares in auto maker Stellantis (STLA) raced higher today as rival Tesla (TSLA) was handed another huge roadblock in the Chinese EV market.
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The Stellantis leap came on reports that Hangzhou-based EV maker Zhejiang Leapmotor Technology is launching a battery-powered sedan in mainland China.
Leap Lower
The B01, a midsize sedan, offers features similar to Tesla’s Model 3 but reportedly at less than half the price at 89,800 yuan.
According to a report in the South China Morning Post, it is understood that Leapmotor, which is backed by Stellantis, also plans to launch the car in global markets at a yet-to-be-decided date.
Deliveries to mainland Chinese customers will reportedly begin this month and include five variants with driving ranges from 430 kilometers to 650 kilometers.
The top-end model is priced at 119,800 yuan, the report said. Meanwhile, a Tesla-made Model 3 is priced from 235,500 yuan to 339,500 yuan.
Tesla’s China sales have suffered this year, falling month after month, as it suffered more intense competition from domestic rivals such as BYD (BYDDY). That’s important given that a fifth of Tesla revenues come from China – see below.
Stellantis Charge
China’s car market has also been dragged into a price war as companies compete to win over consumers who, hit by a sluggish economy, are reluctant to spend.
However, Tesla recorded a 0.8% increase in June, delivering 71,599 units and breaking an eight-month losing streak. Meanwhile, deliveries of Tesla’s China-made Model 3 and Model Y autos surged 16.1% compared to May. These figures include vehicles sold both within China and exported to other markets.
Tesla is hoping for further growth from its revamped Model Y car. The six-seat sports utility vehicle could be launched in the fall.
Reports suggest that the new Model Y will be larger than the current five-seat version and will have a top speed of 201 kilometers an hour.
As for Stellantis, known for traditional car brands such as Chrysler, it keeps charging forward in the electric space.
It has been reported that starting this September, some South African Stellantis dealers will sell Leapmotor electric vehicles, starting with the C10 SUV. More models are set to follow over the course of 2025 and into 2026.
It’s much needed if it wants to keep making inroads into the likes of Tesla both in China and elsewhere. As we see below it has underperformed Tesla substantially over the last 12 months.
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