Shares in Chinese tech group Xiaomi (XIACF) stormed 10% higher today after customers scrambled to get their hands on its new Tesla (TSLA)-challenging electric vehicle.
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Cheaper and Longer
Xiaomi said it received 200,000 orders in just three minutes after the launch of its new YU7 electric SUV. It is priced at around $35,000, making it 4% cheaper than Tesla’s rival Model Y in China.
It also boasts a top range of 835 km, leaving the Model Y with its 719 km reach way behind in its rearview mirrors. It can also accelerate from zero to 62mph in just 3.23 seconds.
Other exciting features include an Nvidia (NVDA) Drive AGX Thor in-vehicle computing platform and active air suspension.
“I think we have witnessed a miracle in China’s auto industry,” said Lei Jun, co-founder of Xiaomi, after seeing the pre-order figures. “I truly think this is a spectacular result.”
According to analysts, this marks Xiaomi’s most aggressive move in the EV space and could help Xiaomi transition from a tech-first brand to a mass-market car manufacturer.
Troubled Tesla
It is also a huge challenge to troubled Tesla, whose sales have slumped in China, Europe and elsewhere in recent 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.
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.
Deutsche Bank expects Xiaomi to deliver 100,000 YU7 SUVs this year and 280,000 SU7s.
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