Exceptionally strong initial orders for Xiaomi’s YU7 electric sport utility vehicle sent shares within the automotive newcomer to a record high on Friday and fanned speculation that Tesla could have to chop prices to fight back.
In the primary 18 hours after the YU7 went on sale, Xiaomi received some 240,000 orders that it considers locked in, with buyers having paid either a hefty deposit for ready-to-deliver cars or a smaller deposit for cars still to be made.
The smartphone and appliance maker made an enormous splash in China’s electric vehicle market with the launch of its first vehicle, the SU7 sedan, in March last yr. The automobile has outsold Tesla’s Model 3 in China on a monthly basis since December and has even earned a rave review from Ford CEO Jim Farley.
The YU7 is just its second model and priced from 253,500 yuan ($35,360), it undercuts Tesla’s Model Y by nearly 4%. That can likely result in more market share loss for the US automaker, analysts said.
At one Xiaomi automobile showroom in Beijing, dozens of individuals were gathered across the YU7.
Otto Shi, a 26-year-old Tesla Model Y owner who works in finance, said he was considering getting a YU7 for his father who currently drives a Mercedes-Benz.
“We could take turns to drive the Model Y and YU7,” he said, adding that he was impressed by Xiaomi’s prowess in supply chains and the SU7’s success had made him consider Xiaomi is the perfect Chinese brand to modify to.
Xiaomi’s shares shot 8% higher in early trade to an all-time high but later pared gains to shut up 3.6%. They’ve risen by greater than 70% to date this yr to value the corporate at roughly $190 billion, making it the most effective performing large-cap stock in Asia Pacific, in response to LSEG data.
What can Tesla do?
As domestic rivals increasingly win over Chinese consumers with snazzy latest features, Tesla’s share of the Chinese EV market has fallen from a peak of 15% in 2020 to 10% last yr and on the other hand to 7.6% for the primary five months of 2025.
Citi analysts said in a note to clients that it could have to chop prices further, offer its “Full Self-Driving” (FSD) driver assistance software free of charge and offer more financing incentives whether it is to compete successfully with Xiaomi.
Tesla, which counts China as its biggest market in response to first-quarter sales numbers, didn’t immediately reply to a request for comment. Last yr, China accounted for roughly a fifth of its revenue.
While Xiaomi CEO Lei Jun acknowledged that Tesla’s driving assistance software was superior, he touted a spread of other features where he said the YU7 outperformed the Model Y.
The YU7’s base model is supplied with a 96.3 kWh battery pack, offering a driving range of as much as 835 km (519 miles) on a single charge and supporting high-power fast charging.
That compares with a maximum range of 719 km for the redesigned Tesla Model Y, which uses a smaller 78.4 kWh battery.
Its backseats have drawers for storage under them and the YU7’s driver assistance software comes at no extra charge while Tesla charges 64,000 yuan for its smart driving software, he added.
On Thursday night, Xiaomi said it had received 289,000 orders for the YU7 in the primary hour after it went on sale, greater than thrice the extent for its SU7 when it launched.
Lei has said, nevertheless, that a portion of orders was likely being placed by scalpers. On Chinese secondhand platform Xianyu, there have been tons of of individuals on Friday seeking to sell their position within the order queue to others.
Aiming to mitigate such scalping, Xiaomi is now limiting each customer to buying two cars at most.
Exceptionally strong initial orders for Xiaomi’s YU7 electric sport utility vehicle sent shares within the automotive newcomer to a record high on Friday and fanned speculation that Tesla could have to chop prices to fight back.
In the primary 18 hours after the YU7 went on sale, Xiaomi received some 240,000 orders that it considers locked in, with buyers having paid either a hefty deposit for ready-to-deliver cars or a smaller deposit for cars still to be made.
The smartphone and appliance maker made an enormous splash in China’s electric vehicle market with the launch of its first vehicle, the SU7 sedan, in March last yr. The automobile has outsold Tesla’s Model 3 in China on a monthly basis since December and has even earned a rave review from Ford CEO Jim Farley.
The YU7 is just its second model and priced from 253,500 yuan ($35,360), it undercuts Tesla’s Model Y by nearly 4%. That can likely result in more market share loss for the US automaker, analysts said.
At one Xiaomi automobile showroom in Beijing, dozens of individuals were gathered across the YU7.
Otto Shi, a 26-year-old Tesla Model Y owner who works in finance, said he was considering getting a YU7 for his father who currently drives a Mercedes-Benz.
“We could take turns to drive the Model Y and YU7,” he said, adding that he was impressed by Xiaomi’s prowess in supply chains and the SU7’s success had made him consider Xiaomi is the perfect Chinese brand to modify to.
Xiaomi’s shares shot 8% higher in early trade to an all-time high but later pared gains to shut up 3.6%. They’ve risen by greater than 70% to date this yr to value the corporate at roughly $190 billion, making it the most effective performing large-cap stock in Asia Pacific, in response to LSEG data.
What can Tesla do?
As domestic rivals increasingly win over Chinese consumers with snazzy latest features, Tesla’s share of the Chinese EV market has fallen from a peak of 15% in 2020 to 10% last yr and on the other hand to 7.6% for the primary five months of 2025.
Citi analysts said in a note to clients that it could have to chop prices further, offer its “Full Self-Driving” (FSD) driver assistance software free of charge and offer more financing incentives whether it is to compete successfully with Xiaomi.
Tesla, which counts China as its biggest market in response to first-quarter sales numbers, didn’t immediately reply to a request for comment. Last yr, China accounted for roughly a fifth of its revenue.
While Xiaomi CEO Lei Jun acknowledged that Tesla’s driving assistance software was superior, he touted a spread of other features where he said the YU7 outperformed the Model Y.
The YU7’s base model is supplied with a 96.3 kWh battery pack, offering a driving range of as much as 835 km (519 miles) on a single charge and supporting high-power fast charging.
That compares with a maximum range of 719 km for the redesigned Tesla Model Y, which uses a smaller 78.4 kWh battery.
Its backseats have drawers for storage under them and the YU7’s driver assistance software comes at no extra charge while Tesla charges 64,000 yuan for its smart driving software, he added.
On Thursday night, Xiaomi said it had received 289,000 orders for the YU7 in the primary hour after it went on sale, greater than thrice the extent for its SU7 when it launched.
Lei has said, nevertheless, that a portion of orders was likely being placed by scalpers. On Chinese secondhand platform Xianyu, there have been tons of of individuals on Friday seeking to sell their position within the order queue to others.
Aiming to mitigate such scalping, Xiaomi is now limiting each customer to buying two cars at most.
