Stellantis Powers Ahead With Sub?100,000?Yuan EV

Stellantis (NYSE:STLA) powers ahead as partner Leapmotor preps a sub?100K yuan EV launch.

Shares jumped 3.8% today after reports that Zhejiang Leapmotor will roll out its B01 midsize sedan in China starting this month, with prices from 89,800 yuan to 119,800 yuan versus Tesla’s (NASDAQ:TSLA) Model 3 at 235,500 yuan339,500 yuan.

The B01 offers driving ranges of 430 km to 650 km and aims to undercut Model 3 by more than half.

China’s auto market has slipped into a price war amid a sluggish economy, but Leapmotor deliveries could pressure Tesla , whose China sales fell month after month before a modest 0.8% uptick to 71,599 units in June.

Stellantis is also expanding Leapmotor’s footprint: starting in September South African dealers will sell the C10 SUV, with more models due through 2026.

The collaboration gives Stellantis a faster route into electric growth in China and abroad as it competes with both legacy makers and startups.

Why it matters: Securing market share with budget EVs could help STLA close the gap on Tesla and other EV leaders.

Investors will be watching Leapmotor’s early delivery figures and Stellantis’s next sales update for signs this strategy is paying off.

This article first appeared on GuruFocus.