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Tesla-inspired Xpeng Motors unveils Model 3 competitor despite Autopilot lawsuit

Credit: Xpeng Motors

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China’s Xpeng Motors recently unveiled its answer to the Tesla Model 3, the P7 sedan. The vehicle is impressive, packing up to 440 miles of range per charge under NEDC standards at a price that undercuts more established rivals. But the company’s competition with Tesla goes beyond the pavement and well into the courtroom.

Xpeng issued a press release on April 27 announcing the official launch of its second production model vehicle. The P7 is currently available for order in China in three versions: a 4WD High Performance trim that can hit 0-100 km/h in 4.3 seconds, an RWD Super Long Range variant that goes 440 miles under the NEDC cycle, and the entry level RWD Long Range. The all-electric sedan uses 12 ultrasonic sensors, five millimeter-wave radars, and 14 cameras to operate its autonomous driving system, which is known as XPILOT3.0. After subsidies, the car will cost between $32,462 and $49,404.

“Today is a milestone in the 5-year history of Xpeng Motors,” Chairman and CEO He Xiaopeng said. “The P7’s launch solidifies Xpeng Motors’ leading position in China’s smart EV market. Our ability to launch the P7 in the challenging conditions of the COVID-19 crisis is a testament to the strength of our young company.”

However, Xpeng’s presence in the world of electric vehicles goes much further than the launch of its new car. The company is currently in a legal battle with Tesla, who is suing a company engineer for allegedly stealing Autopilot’s source code prior to starting his employment at the Chinese automaker.

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Tesla accused Guangzhi Cao of downloading Autopilot’s source code to his personal computer and transferring it via Apple Airdrop before selling it to Xpeng for financial gain. Airdrop is a complicated method to trace because it uses Transport Layer Security (TLS) encryption. Cao, for his part, maintains that he did download some of Autopilot’s source code to his personal computer, but he argued that he deleted it before leaving Tesla to join Xpeng.

Unfortunately for the Chinese EV startup, Tesla’s Autopilot source lawsuit is turning ugly. The most recent developments in the lawsuit state that Xpeng is claiming Tesla’s requests are “stereotypical” after the company demanded information from an ex-employee of Apple. Just like Cao, the ex-Apple employee left his job for Xpeng and was criminally charged with providing information to the Chinese automaker, Automotive News stated.

“Tesla’s latest demands crossed the line, seeking to rummage through our IP on Tesla’s terms — and smearing us along the way with misrepresentations and innuendo,” a spokesperson from Xpeng’s U.S. affiliate, XMotors, said. “Tesla’s overreach and distortions confirm this is just a fishing expedition meant to bully and disrupt a young competitor.”

Interestingly enough, Xpeng executives have been vocal supporters of Tesla in the past. President and Vice Chairman of Xpeng, Brian Gu, has passed along compliments to Tesla, comparing them to technology giant Apple. “Tesla reminds me of Apple. It educated the high-end market for China, but it also spurred a lot of competitive, diverse brands like Xiaomi and Huawei to come up with really cool and affordable products,” Gu said.

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Additionally, CEO He Xiaopeng stated that the company probably would not exist if Tesla didn’t release 200 patents to the public a few years ago. One of the reasons Xpeng was founded was because Elon Musk made Tesla’s patents available. It was so exciting,” he said. However, these patents did not include any Autopilot coding, which is instrumental in Tesla’s lead in the autonomous vehicle industry.

Xpeng’s full press release is available here.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla adds awesome new driving feature to Model Y

Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.

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Credit: Tesla

Tesla is adding an awesome new driving feature to Model Y vehicles, effective on Juniper-updated models considered model year 2026 or newer.

Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.

Tesla writes in the release notes for the feature:

“Your Tesla now provides a smoother feel as you come to a complete stop during routine braking.”

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Interestingly, we’re not too sure what catalyzed Tesla to try to improve braking smoothness, because it hasn’t seemed overly abrupt or rough from my perspective. Although the brake pedal in my Model Y is rarely used due to Regenerative Braking, it seems Tesla wanted to try to make the ride comfort even smoother for owners.

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There is always room for improvement, though, and it seems that there is a way to make braking smoother for passengers while the vehicle is coming to a stop.

This is far from the first time Tesla has attempted to improve its ride comfort through Over-the-Air updates, as it has rolled out updates to improve regenerative braking performance, handling while using Full Self-Driving, improvements to Steer-by-Wire to Cybertruck, and even recent releases that have combatted Active Road Noise.

Tesla set to activate long-awaited Cybertruck feature

Tesla holds a unique ability to change the functionality of its vehicles through software updates, which have come in handy for many things, including remedying certain recalls and shipping new features to the Full Self-Driving suite.

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Tesla seems to have the most seamless OTA processes, as many automakers have the ability to ship improvements through a simple software update.

We’re really excited to test the update, so when we get an opportunity to try out Comfort Braking when it makes it to our Model Y.

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Tesla finally brings a Robotaxi update that Android users will love

The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android.

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Credit: Grok

Tesla is finally bringing an update of its Robotaxi platform that Android users will love — mostly because it seems like they will finally be able to use the ride-hailing platform that the company has had active since last June.

Based on a decompile of software version 26.2.0 of the Robotaxi app, Tesla looks to be ready to roll out access to Android users.

According to the breakdown, performed by Tesla App Updates, the company is preparing to roll out an Android version of the app as it is developing several features for that operating system.

The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android:

“Strings like notification_channel_robotaxid_trip_name and android_native_alicorn_eta_text show exactly how Tesla plans to replicate the iOS Live Activities experience. Instead of standard push alerts, Android users are getting a persistent, dynamically updating notification channel.”

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This is a big step forward for several reasons. From a face-value perspective, Tesla is finally ready to offer Robotaxi to Android users.

The company has routinely prioritized Apple releases because there is a higher concentration of iPhone users in its ownership base. Additionally, the development process for Apple is simply less laborious.

Tesla is working to increase Android capabilities in its vehicles

Secondly, the Robotaxi rollout has been a typical example of “slowly then all at once.”

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Tesla initially released Robotaxi access to a handful of media members and influencers. Eventually, it was expanded to more users, so that anyone using an iOS device could download the app and hail a semi-autonomous ride in Austin or the Bay Area.

Opening up the user base to Android users may show that Tesla is preparing to allow even more users to utilize its Robotaxi platform, and although it seems to be a few months away from only offering fully autonomous rides to anyone with app access, the expansion of the user base to an entirely different user base definitely seems like its a step in the right direction.

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Lucid unveils Lunar Robotaxi in bid to challenge Tesla’s Cybercab in the autonomous ride hailing race

Lucid’s Lunar robotaxi is gunning for Tesla’s Cybercab in the autonomous ride hailing race

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Lucid Lunar robotaxi concept [Credit: Rendering by TESLARATI]

Lucid Group pulled back the curtain on its purpose-built autonomous robotaxi platform dubbed the Lunar Concept. Announced at its New York investor day event, Lunar is arguably the company’s most ambitious concept yet, and a direct line of sight toward the autonomous ride haling market that Tesla looks to control.

At Lucid Investor Day 2026, the company introduced Lunar, a purpose-built robotaxi concept based on the Midsize platform.

A comparison to Tesla’s Cybercab is unavoidable. The concept of a Tesla robotaxi was first introduced by Elon Musk back in April 2019 during an event dubbed “Autonomy Day,” where he envisioned a network of self-driving Tesla vehicles transporting passengers while not in use by their owners. That vision took another major step in October 2024 when, Musk unveiled the Cybercab at the Tesla “We, Robot” event held at Warner Bros. Studios in Burbank, California, where 20 concept Cybercabs autonomously drove around the studio lot giving rides to attendees.

Tesla unveils the Robovan at ‘We, Robot’ event

Fast forward to today, and Tesla’s ambitions are finally materializing, but not without friction. As we recently reported, the Cybercab is being spotted with increasing frequency on public roads and across the grounds of Gigafactory Texas, suggesting that the company’s road testing and validation program is ramping meaningfully ahead of mass production. Tesla already operates a small scale robotaxi service in Austin using supervised Model Ys, but the Cybercab is designed from the ground up for high-volume, low-cost production, with Musk stating an eventual goal of producing one vehicle every 10 seconds.

At Lucid Investor Day 2026, the company introduced Lunar, a purpose-built robotaxi concept based on the Midsize platform.

Into this landscape steps Lucid’s Lunar. Built on the company’s all-new Midsize EV platform, which will also underpin consumer SUVs starting below $50,000. The Lunar mirrors the Cybercab’s core philosophy of having two seats, no driver controls, and a focus on fleet economics. The platform introduces Lucid’s redesigned Atlas electric drive unit, engineered to be smaller, lighter, and cheaper to manufacture at scale.

Unlike Tesla’s strategy of building its own ride hailing network from scratch, Lucid is partnering with Uber. The companies are said to be in advanced discussions to deploy Midsize platform vehicles at large scale, with Uber CEO Dara Khosrowshahi publicly backing Lucid’s engineering credentials and autonomous-ready architecture.

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In the investor day event, Lucid also outlined a recurring software revenue model, with an in-vehicle AI assistant and monthly autonomous driving subscriptions priced between $69 and $199. This can be seen as a nod to the software revenue stream that Tesla has long championed with its Full Self-Driving subscription.

Tesla’s Cybercab is targeting a price point below $30k and with operating costs as low as 20 cents per mile. But with regulatory hurdles still ahead, the window for competition is open. Lucid’s Lunar may not have a launch date yet, but it arrives at a pivotal moment, and when the robotaxi race is no longer viewed as hypothetical. Rather, every serious EV player needs to come to bat on the same plate that Tesla has had countless practice swings on over the last seven years.

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