Chinese smartphone maker and recent EV entrant Xiaomi Corp. (XIACF) will start selling its YU7 vehicle in July, the company’s CEO Lei Jun said in a post on social media platform Weibo.
The YU7 SUV is Xiaomi’s second car after the SU7 sedan. Its price is unknown, but it is expected to rival Tesla’s best-selling Model Y in China.
Xiaomi launched YU7 on Thursday as part of the company’s 15th anniversary celebration. Reuters reported that the CEO also compared Model Y and YU7 in a presentation.
Xiaomi's first car, the SU7, competes with Tesla’s Model 3 sedan in the Chinese EV market. While the base variant SU7 starts at about RMB215,900 yuan ($29,976), the Model 3 has a starting price of RMB235,500.
Reuters noted that SU7 has outsold Model 3 every month since December.
Xiaomi previously said that it sold 136,854 SU7 vehicles in 2024 and is targeting a delivery of 350,000 vehicles in 2025.
For Tesla, the new vehicle launch marks an increase in competition in its second-largest market, China, after it reported first-quarter 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, with a starting price of RMB263,500.
On Stocktwits, retail sentiment around XIACF stayed within the ‘bullish’ territory over the past 24 hours while message volume remained at ‘high’ levels.
XIACF stock has risen over 55% this year and about 180% over the past 12 months.
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