Leapmotor Launches Budget Smart EV to Rival Tesla Model 3 Globally
- tech360.tv
- Jul 25, 2025
- 2 min read
Leapmotor has unveiled its new electric midsize sedan, the B01, priced at less than half the cost of Tesla’s Model 3, as part of its global expansion strategy.
The Hangzhou-based electric vehicle maker announced that deliveries to customers in mainland China will begin this month. However, the company has not disclosed when the B01 will be available in overseas markets.
The B01 starts at 89,800 yuan (USD 12,542) and is built on Leapmotor’s upgraded Leap3.5 architecture, which supports smart driving and fast charging.
The vehicle comes in five variants with driving ranges between 430 km and 650 km. The top-end model is priced at 119,800 yuan. Its battery can deliver about 300 km of range with just 18 minutes of charging.
The B01 is equipped with lidar sensors to enhance its driver assistance system.
In comparison, the Shanghai-made Tesla Model 3, which can travel up to 635 km on a single charge, is priced between 235,500 yuan and 339,500 yuan.
Leapmotor’s senior vice-president Cao Li said the B01 is designed to meet demand for a high-quality, affordable mass-market car.
Industry analysts say the B01 joins a growing list of Chinese EVs challenging Tesla’s dominance, including Xpeng’s Mona M03, which launched last August.
The Mona M03, priced from 119,800 yuan to 159,800 yuan, features preliminary autonomous driving and recorded 14,111 shipments in June, a 29.5% increase from the previous month.
Tesla’s Shanghai Gigafactory produced 16,636 Model 3s for mainland customers in June, down 20.4% from May.
China remains the world’s largest EV market, but intense price competition has squeezed profit margins across the industry.
Consultancy AlixPartners estimates that fewer than 10% of China’s EV brands will be profitable in the next five years due to overcapacity and ongoing price wars.
However, analysts see potential for higher profit margins in overseas markets.
Leapmotor delivered 48,006 vehicles in June, a 6.5% increase from May, setting a new monthly record.
In the first half of 2024, the company shipped 221,664 units, up 156% year on year.
Leapmotor aims to sell 500,000 units in 2025 and ultimately reach annual sales of 4 million units, according to CEO Zhu Jiangming.
In October 2023, Stellantis invested USD 1.6 billion in Leapmotor, acquiring a 20% stake in the company.
Leapmotor was founded in 2015 by Zhu, a former electronics engineer and co-founder of surveillance firm Dahua. Its investors include Shanghai Electric Group and Hongshan, formerly Sequoia Capital China.
Leapmotor launches B01 EV in China starting at USD 12,542
B01 offers up to 650 km range and fast charging in 18 minutes
Model challenges Tesla’s Model 3 at less than half the price
Source: SCMP
