Xiaomi’s YU7 SUV Sparks 240,000 Orders in 18 Hours, Escalating EV Showdown With Tesla

Xiaomi’s latest electric vehicle, the YU7 SUV, has drawn remarkable attention, with around 240,000 confirmed orders within the first 18 hours of launch. This overwhelming interest propelled Xiaomi’s stock to an all-time high on Friday. The YU7’s debut follows the success of the SU7 sedan, launched in March last year, which has consistently outsold Tesla’s Model 3 in China since December. The electric SUV’s competitive pricing and Xiaomi’s strong brand presence in tech appear to have significantly resonated with Chinese consumers.

Xiaomi Targets Mid-Range EV Market With Competitive Pricing and Feature-Rich YU7 SUV

Priced from 253,500 yuan ($35,360), the YU7 undercuts Tesla’s Model Y by about 4%, signaling a strategic move by Xiaomi to dominate the mid-range EV market. Tesla, already grappling with declining market share in China, could face intensified pressure.

Industry analysts predict Xiaomi’s growing influence will result in further erosion of Tesla’s hold, which has slipped from 15% in 2020 to 7.6% in early 2025. Consumers, such as current Tesla owners, are already considering switching or supplementing their vehicles with Xiaomi’s offerings.

Xiaomi has focused heavily on integrating smart, consumer-centric features into its EVs. The YU7 boasts a larger battery (96.3 kWh) offering a 519-mile range, besting the Model Y’s 719 km range on a 78.4 kWh battery. It also includes added comforts like under-seat storage drawers and free driver-assistance software, which Tesla charges extra for. CEO Lei Jun highlighted these advantages, noting that while Tesla’s software may be superior, Xiaomi delivers better value and usability for everyday drivers.

Tesla Faces Pressure as Xiaomi’s EV Surge Forces Strategic Recalibration in China

Facing mounting competition, especially in China—its largest market—Tesla may need to adjust its pricing strategy and offer incentives. Analysts at Citi suggest Tesla could provide its Full Self-Driving (FSD) software for free and improve financing options to retain customers. With Chinese rivals rapidly enhancing their vehicles with advanced features and aggressive pricing, Tesla’s next moves will be critical to maintaining its relevance and profitability in the region.

Xiaomi’s rapid surge in YU7 orders has brought along some challenges, including a rise in scalpers attempting to resell their positions in the order queue on resale platforms like Xianyu. In response, the company has implemented a purchase limit of two vehicles per customer to protect order integrity and maintain buyer confidence.

While some of the orders may be speculative, the overwhelming demand highlights the strong consumer interest in the YU7 and further solidifies Xiaomi’s emergence as a significant new player in the global electric vehicle market.