Xpeng Follows Tesla Into Germany With New R&D Center As EV Battle Heats Up In Europe

The move marks Xpeng’s ninth global research site, while Tesla faces sliding sales in Europe.

Xpeng will open its first European research and development center in Munich, underscoring its push into a key export market as U.S. rival Tesla contends with falling sales across much of the continent.

The Chinese EV maker announced the facility at the IAA Mobility show, calling it its ninth R&D hub globally and its first in Europe. The Munich site will work alongside centers in Silicon Valley, San Diego and several Chinese cities to adapt products for European buyers and accelerate local innovation, CnEVPost reported.

The Munich center enables us to directly listen to European users and translate their needs into innovations, Vice Chairman and Co-President Brian Gu said. He added the expansion reflects Xpeng’s principle of “In Europe, With Europe.”

The move mirrors Tesla’s decision last week to establish a new R&D hub in Berlin-Köpenick by 2026, with up to 250 staff dedicated to new platforms, battery systems and charging technologies.

However, Tesla’s broader position in Europe has weakened. New registrations in Germany plummeted 39% last month and are down 56% year-to-date, according to the Federal Motor Transport Authority. 

Sales also slid sharply in France, Belgium, Denmark and Sweden, with Norway the only major market showing growth. Across Europe, battery-electric vehicle sales rose 26% in the first seven months of the year, while Tesla’s fell 40%.

At IAA Mobility, Xpeng displayed five models, including the next-generation P7 sedan, G6 and G9 SUVs, X9 MPV, and P7+, alongside prototype technologies such as its Iron humanoid robot, a flying car concept and its SEPA smart electric platform. 

The company aims to launch Level 4 autonomous driving vehicles by 2026 and begin robotaxi pilot operations in China.

Xpeng delivered a record 37,709 vehicles in August, up 169% from a year earlier, bringing cumulative deliveries to 861,994 since its founding. The company entered Europe in 2021 via Norway and now operates in 46 countries and regions.

On Stocktwits, retail sentiment was ‘bearish’ on Xpeng with ‘low’ message volume, while sentiment on Tesla was ‘neutral’ amid ‘high’ message volume.

While Xpeng’s stock has risen 74.1% so far in 2025, Tesla’s stock has declined 14.2% over the same period.

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