Just when EV maker Tesla (TSLA) seemed to have corrected its sales slide in China, it now faces new competition for well-heeled drivers from Stellantis (STLA)-backed Leapmotor.
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Analysts in China believe that Leapmotor’s D19 luxury SUV, which was unveiled on Thursday October 16, will likely be priced below that of rival Tesla’s Model Y L, which starts at $47,580. Tesla shares were down over 2% in pre-market trading.
Bigger and Longer
According to an article in the South China Morning Post, Leapmotor is one of several EV makers to be “raising the game in the premium segment” by producing more spacious and longer-range models to take on Tesla. Others include Xiaomi (XIACF), which launched its YU7 SUV earlier this year.
Leapmotor founder and chief executive officer Zhu Jiangming said at the launch that his decision to move up the value chain of EV production was part of a “mission” to offer drivers the best vehicles at the best prices.
“Leapmotor is able to launch higher-end and more sophisticated models at affordable prices, which will prove to be a value-for-money proposition for all customers,” he said. “We have been fine-tuning our technologies and improving our capabilities for years.”
It marks the first model in its D-series lineup. Deliveries are expected to commence in the first half of 2026.
European Drive
Leapmotor also plans to launch the first model of its A-series lineup in the first quarter of 2026. The standard version of the model has recently been delivered to suppliers for testing, according to the report.
The new model will be developed simultaneously for the Chinese and European markets, featuring a smaller size than the B-series to align with European consumer preferences, the report said.
Leapmotor said its European car manufacturing plant in Spain, at Stellantis’s existing vehicle assembly plant, will also be completed next year.
The luxury launch comes only days after Tesla said China-made EV sales rose 2.8% year-over-year in September, ending a two-month sales decline. The increase was largely driven by higher demand for the newly launched six-seater Model Y SUV in the Chinese market, so that demand could come under pressure from Leapmotor.
That matters because, as seen above, China is a key market for Tesla.
In China, Tesla announced a host of incentives to attract more buyers. Tesla is offering 0% APR financing on several models, paint credits, and free Full Self-Driving (FSD) transfer for new purchases.
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