Xpeng Launches ‘ChatGPT’s Favorite Car’ in Further AI Challenge to Rival Tesla

Chinese EV maker Xpeng (XPEV) threw down the gauntlet to U.S. rival Tesla (TSLA) today by hailing the launch of a new AI powered vehicle which it describes as “more than a car.”

AI Auto

Xpeng said its P7 EV super saloon would challenge rivals such as Tesla’s mid-sized sedan Model 3. He Xiaopeng, CEO, of Xpeng said: “The second-generation P7 is more than a car. It is Xpeng’s answer for the artificial intelligence era in form and function.”

Indeed it claimed that it is “the world’s first AI-defined vehicle”, with highly advanced, human-aping autonomous driving functions and a ‘smart cockpit’ with a conversational voice assistant and rapid processing times. It is powered by its own in-house built Turing AI chip.

According to a clever line from industry title Autocar if “ChatGPT drove a luxury car, it might be this.”

The Autocar article said is not clear whether the car will be sold outside of China. But Xpeng’s UK importer, International Motors, told the magazine that it plans to eventually make Xpeng the country’s “number-one Chinese premium EV brand”, with a line-up comprising five models by 2028.

The G6, X9 and G9 SUV are the first out of the blocks, with another two models due to follow in 2027. One of those could be the P7.

Pressure on Tesla

Xpeng stock didn’t exactly race away with excitement dropping nearly 3% in early trading. But the new launch is likely to increase pressure on rivals such as BYD (BYDDY) and Tesla.

Elon Musk’s firm is struggling to compete in China and elsewhere in recent months. Earlier this week it was revealed that sales of new Tesla cars in China dropped 58% from the previous week and 69% year-over-year during the week of May 5 to 11, the lowest level since January.

This is down to a number of factors including the need to refresh its ranges, the fallout from Musk’s close relationship with President Trump and more intense competition.

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