Xiaomi Reveals YU7 Pricing Undercutting Tesla Model Y In China, Receives Over 200,000 Pre-Orders Within Minutes

Chinese EV maker Xiaomi (XIACF) on Thursday unveiled the price of its YU7 SUV, undercutting Tesla Inc.’s (TSLA) Model Y in China.

Xiaomi’s YU7 SUV will start at RMB 253,500 yuan ($35,322), CEO Lei Jun said Thursday. This is RMB 10,000 lower than the Model Y, which starts at RMB 263,500 in the country.

Xiaomi, predominantly a smartphone maker, stepped into the electric vehicles market with its SU7 sedan last year. The YU7, the company’s second car, was unveiled last month.

While the SU7 is up against Tesla’s Model 3 sedan in China, the YU7 is up against the Model Y. The SU7 starts at RMB 215,900 in China while the Model 3 starts at RMB 253,500.

Xiaomi previously said that it sold 136,854 SU7 vehicles in 2024 and is targeting a delivery of 350,000 vehicles in 2025. The second EV model will be key to achieving this goal.

According to a report from CNBC, Xiaomi started pre-sales on Thursday and received over 200,000 orders within three minutes. Deliveries of the vehicle are expected within one to five weeks, the report added.

For Tesla, the new model marks an increase in competition in its second-largest market, China, after it reported first-quarter global deliveries of 336,681 units, marking a dip of nearly 13% from the corresponding quarter of 2024 and recording the company’s worst quarterly performance in at least two years.

Tesla launched a refreshed version of its Model Y earlier this year in its major markets, including China.

On Stocktwits, retail sentiment around XIACF is trending in the ‘bullish’ territory.

XIACF traded over 11% higher on Thursday afternoon.

The stock is up by about 81% this year and by about 257% over the past 12 months.

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