XPENG has been developing self-driving tech in a very similar way as Tesla for several years. In fact, while pretty much everyone else has decided radar and/or lidar sensors are needed in addition to cameras, XPENG has stuck with Elon Musk’s argument that cameras are the only sensors needed. Our own Larry Evans, who has ridden in Tesla vehicles with V14 FSD as well as XPENG vehicles with their latest self-driving tech, thinks XPENG’s self-driving system is more human-like and better than Tesla’s. He Xiaopeng, chairman and CEO, meanwhile, wants his company’s self-driving capabilities to outperform Tesla’s in China by August (next month). It’s certainly a hard thing to quantify, and you are sure to find people arguing both sides, but I think one thing that’s clear is they are very similar in their design and their capabilities. But XPENG wants to compete not just in China. Like several other Chinese EV makers, XPENG has been focusing on growing its sales in Europe. More than half of the company’s sales outside of China were in Europe last year, and the Guangzhou-headquartered automaker surely wants that number to be much higher in 2026. To help stimulate sales, the company intends to release its self-driving tech, Vision Language Action (VLA) 2.0, in Europe in the second half of the year. This tech is supposed to eventually offer “minds-off” Level 4 autonomous driving. The company does believe it will be able to compete well against Tesla despite its much longer and broader presence in Europe. “We are very confident that we can be head-to-head competitors with Tesla,” Brian Gu Hongdi, vice-chairman and president at XPENG, told the South China Morning Post (SCMP). “The Chinese market is probably the most competitive and most innovative autonomous driving market in the world,” Gu said. “The confidence comes from the fact that we are trained in the most fit gym in the world.” Boom. That’s quite a statement of intent. Funny enough, several years ago, I remember XPENG trying to find sales not by competing with Tesla and some others in China on tech, but by offering something similar at a significantly lower price. I found that odd at the time, because the company looked like it had tech and cars that were just as good, so why not compete at higher price points. But perhaps that was just necessary at that stage when it was a younger, smaller company trying to break through. In any case, the script has flipped now, and the company is trying to stand out for its advanced tech rather than engaged in a “race to the bottom” on pricing. “While most Chinese brands are still viewed as more of an affordability-driven sort of brand, [we] want to position ourselves as a tech-driven brand,” Gu also told the SCMP. That makes sense to me! It would have made sense to me 5+ years ago! What can XPENG achieve in Europe with VLA 2.0? We will see. What can Tesla achieve in Europe with FSD? We will see. Though, personally, I don’t see any reason XPENG can’t compete head to head with Tesla in Europe. Yes, Tesla has the bigger brand and historical reputation in Europe, but XPENG’s CEO isn’t constantly promoting xenophobia, racism, and fascism on the continent. So, who knows? We’ll find out in the coming years if XPENG can gobble up some of Tesla’s market share, or if they both can grow market share in an electrifying Europe.