Tesla Stock (TSLA) Defiant Despite Threat to Chinese EV Throne

EV maker Tesla’s (TSLA) shares rose today despite rival Xiaomi threatening its market dominance in China with a brand new vehicle.

Longer Range

Tesla stock defiantly climbed 1% even after Chinese rival Xiaomi said it would start selling its YU7 electric vehicle SUV in July. Analysts believe it will be the strongest rival to Tesla’s best-selling Model Y.

Indeed, in the presentation of the new vehicle, Xiaomi chief executive Lei Jun made a couple of comparisons with the Tesla model. He said that the YU7 has a driving range of up to 835 kilometers, which would leave the Model Y in its wing mirrors given that its range is 719 kilometers. It can also accelerate from zero to 62mph in just 3.23 seconds.

Other exciting features include a Nvidia (NVDA) Drive AGX Thor in-vehicle computing platform and active air suspension.

However, Jun did add that the YU7 is likely to be more expensive, with full price details also coming in July.

Tesla Troubles

Xiaomi has challenged and beaten Tesla before. Its EV SU7 sedan launched last year has outsold Tesla’s Model 3 in China, selling over 200,000 as of April 2025. However, new orders have been hit following an SU7 accident earlier this year.

Deutsche Bank expects Xiaomi to deliver 100,000 YU7 SUVs this year and 280,000 SU7s.

Xiaomi’s attempts to dethrone Tesla in China add to the Elon Musk-led company’s woes. Its sales have slumped in China, Europe and elsewhere in the last few months.

That’s due to increased competition, a need for a vehicle refresh, tariff impact and a hit to the brand’s image given Musk’s close relationship with President Trump.

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