XPeng Inc. has outlined a strategic roadmap to achieve Level 4 autonomous driving by 2028, advancing from its current SEPA 3.0 architecture to the upcoming SEPA 4.0. This new architecture aims to combine Level 4 autonomy, an in-house AI foundation model and "embodied AI" across vehicles and robots. The Mona L03 serves as the first global showcase for SEPA 3.0, pairing XPeng’s second-generation Vision-Language-Action (VLA) system with its proprietary Turing AI chips.

The company opened Chinese pre-sales for the Mona L03 at 143,800 yuan. Every trim includes a Turing chip, while higher versions run the full VLA system on multiple processors. This launch follows XPeng’s strongest month of 2026, when it delivered 40,126 vehicles in June, representing a 16% increase from the previous year.

Technology and Strategic Partnerships

XPeng’s technology extends beyond its own passenger vehicles. Volkswagen AG began mass-producing its first jointly developed XPeng-based model in March, utilizing XPeng’s autonomous driving systems and Turing AI chips. Additionally, XPeng is expanding its VLA framework to build robotaxis, humanoid robots and flying cars.

The Mona L03 positions itself as a direct competitor to Tesla Inc.’s Full Self-Driving (FSD) system. XPeng CEO He Xiaopeng has stated that the VLA system performs better than FSD on narrow roads and in complex situations. While Tesla’s FSD is classified as a Level 2 driver-assistance product requiring human intervention, XPeng’s Level 4 target would allow vehicles to operate without human control under specific conditions.

Financial Metrics and Market Performance

XPeng’s roadmap includes the development of an in-house AI foundation model to support its transition to higher levels of autonomy. The company has not yet released specific performance details for the SEPA 4.0 architecture.

XPeng Inc. delivered 40,126 vehicles in June, representing a 16% year-over-year increase, as the Guangzhou-based smart electric car company reported its delivery results for June and the second quarter of 2026. This performance brings total second-quarter deliveries to 103,295 units, which declined 48% year-over-year. The company highlighted its growing presence in the electric vehicle sector, reaching a significant milestone of 10,000 units for its GX model.

XPeng is preparing to debut its new model, the XPENG MONA L03, in China on July 2. The launch is expected to further boost sales and market share for the manufacturer.

Peer Performance

In a separate release, rival NIO reported delivering 40,597 units in June, reflecting a 62.9% year-over-year increase, and total sales of 107,658 vehicles in the second quarter, up 49.4% year-over-year. Li Auto Inc. also released its latest delivery numbers, reporting 30,895 vehicles delivered in June 2026, a figure representing a 15% year-over-year decrease.

Market Signals and ETF Exposure

XPeng's Benzinga Edge signal reveals a weak momentum profile, indicating that the stock is currently underperforming compared to the broader market. The stock carries significant weight in funds such as the SPDR S&P Kensho Smart Mobility ETF (HAIL) with a 2.69% weight and the Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV) with a 4.19% weight. Consequently, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

XPeng shares were up 1.41% at $13.43 during premarket trading on Wednesday.