Xiaomi has made a bold move in the electric vehicle market with the launch of its second EV, the YU7 SUV. Within just 18 hours of opening orders, the company announced 240,000 confirmed bookings a sign of huge consumer excitement.
Priced at 253,500 yuan (about US $35,360), the YU7 is set to challenge Tesla’s Model Y. It is nearly 4 percent cheaper, yet offers more in terms of features and range. The YU7 comes with a large 96.3 kWh battery, estimated to travel up to 835 km on a single charge, thanks to a smooth fast-charging setup.
Why the Big Demand?
- Big battery, big range: The YU7’s battery is significantly larger than Tesla’s, and its driving range surpasses what the new Model Y offers.
- Smart pricing: Being slightly more affordable, it appeals to buyers looking for value without compromising on capability.
- Loaded features: The vehicle includes free driver-assist technology and extra storage—both pushed as advantages over Tesla.
- Built on success: Xiaomi’s first EV, the SU7 sedan, has already outsold Tesla’s Model 3 in China, setting a strong foundation for the YU7.
Tesla Feels the Heat
Tesla’s position in China has been weakening:
- Model Y’s market share in China has dropped from 15 percent to around 7.6 percent so far this year.
- Analysts say Tesla may have to respond with price cuts, free Full Self-Driving software, or new financing deals.
- Xiaomi is even limiting YU7 orders to two per customer to curb scalping and ensure genuine buyers can get the vehicle.
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Stock Surge and Future Outlook
Xiaomi’s shares jumped to all‑time highs following the YU7 announcement, continuing a year-long rally. The company’s EV division plans to deliver over 350,000 vehicles this year, aiming for profitability in the second half of 2025.
Analysts suggest that Tesla needs to act fast to keep pace in China. Xiaomi’s success is credited to a “smartphone mindset”—balancing price, performance, and features to match local consumer trends.
Final Thoughts
The Xiaomi YU7 launch—240,000 orders in under a day—shows China’s EV battleground heating up. Tesla is facing strong competition, and consumers are responding to localized pricing, large battery capacity, long range, and built-in tech.
The YU7 is not just a new model; it is a statement that homegrown EVs are ready to challenge global brands. If Tesla wants to hold its position in China, it may have to rethink its pricing and product strategy quickly.
