Chinese tech giant Xiaomi is making waves in the electric vehicle (EV) world once again. Just minutes after unveiling its second EV, the YU7, in Beijing, the company racked up over 200,000 orders. And it didn’t stop there. Within the first hour, that number jumped to more than 289,000, showing just how eager fans are to get their hands on Xiaomi’s answer to the Tesla Model Y.
Xiaomi announced the record-breaking figures in a series of Weibo posts on Thursday, following the SUV’s official launch event in Beijing. Priced from $35,000, the YU7 directly challenges Tesla’s Model Y, which starts at approximately $36,760 in China.
“We Accept the Challenge”: Lei Jun Targets Tesla
During the glitzy launch, Xiaomi founder and CEO Lei Jun didn’t hold back on calling out Tesla.
“Tesla previously said, ‘Go ahead and compare,’ and we at Xiaomi just won’t accept defeat,” Lei declared. “Today, we officially take up Tesla’s invite to compare.”
The statement signaled Xiaomi’s aggressive push into a market long dominated by Tesla and BYD. Although Tesla has yet to respond publicly, Lei’s words sparked strong media attention and fan excitement on Chinese social media platforms.
YU7: Premium Specs at a Competitive Price
The YU7 isn’t just about bold words; it’s built to impress. Analysts at Jefferies noted that despite its slightly higher-than-expected price tag, demand remains red hot.
“YU7’s pricing is slightly below that of Tesla Model Y, but it offers much better specs/performance,” Jefferies analysts led by Edison Lee wrote in a Thursday note. “We expect YU7 would be able to take market share from Model Y.”
Xiaomi’s strategy appears clear: deliver high-end specs, stylish design, and competitive pricing to woo Tesla’s customer base in China and potentially globally.
Xiaomi Stock Hits Record High
The market responded swiftly to the YU7’s reception. Xiaomi shares jumped 8% to a record high in Hong Kong trading on Friday, closing up 3.6% at nearly 59 Hong Kong dollars. Investors are optimistic that Xiaomi’s growing EV footprint will further diversify its already strong smartphone and smart home ecosystem.
This year alone, the company’s stock has surged 72%, thanks to stellar SU7 sedan sales, consistent smartphone demand, and expansion into consumer electronics and home appliances.
China’s EV Price War Escalates
The YU7 launch further fuels the ongoing EV price war in China, where domestic players like BYD, Xpeng, and Nio have been consistently trimming prices to outmaneuver Tesla.
Tesla, once the undisputed leader in China’s premium EV space, now faces mounting pressure from Chinese automakers delivering equally compelling vehicles at more accessible price points. The SU7, Xiaomi’s first EV, launched last year, has outsold Tesla’s Model 3 in China every month since December.
Big-Name Admirers in the West
Xiaomi’s EVs are also gaining traction outside China. In a surprising endorsement, Ford CEO Jim Farley revealed last October that he had been test-driving the SU7 for six months and was reluctant to give it up, praising its performance and design.
With the YU7 now in play, Xiaomi is making it abundantly clear: it’s not just another EV brand. It’s a serious contender in the global auto landscape, and Tesla’s dominance may no longer be guaranteed.
