Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. XPeng Inc. on Thursday outlined a path to Level 4 autonomous driving by 2028 as its Mona L03 carries the automaker's latest artificial-intelligence platform into China and Europe, sharpening its challenge to Tesla Inc.. XPeng Details Next-Generation AI Platform According to a report by ElectricVehicles.com, the roadmap advances from XPeng's current SEPA 3.0 architecture to SEPA 4.0, which the company says will combine Level 4 autonomy, an in-house AI foundation model and "embodied AI" across vehicles and robots. The L03 serves as the first global showcase for SEPA 3.0, pairing XPeng's second-generation Vision-Language-Action system with its Turing chips. Don't Miss: - Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast XPeng opened Chinese pre-sales at 143,800 yuan, or about $21,200. Every trim includes a Turing chip, while higher versions run the full VLA system on multiple processors. The launch follows XPeng's strongest month of 2026, when it delivered 40,126 vehicles in June, up 16% from a year earlier. L03 Sharpens Challenge To Tesla FSD The roadmap also turns the L03 into a test of Tesla's lead in assisted driving. XPeng CEO He Xiaopeng has argued that VLA performs better than FSD on narrow roads and in difficult situations. Reuters reported in May that XPeng benchmarks VLA 2.0 against Tesla's FSD v14, while Tesla's latest system still lacked Chinese regulatory approval. Reuters previously described Tesla FSD and comparable Chinese systems as Level 2 driver-assistance products, meaning drivers must remain attentive and ready to intervene. XPeng's Level 4 target would allow a vehicle to drive without human control under defined conditions, but the company has not released SEPA 4.0 performance details. See Also: Avoid the #1 Investing Mistake: How Your