
Xiaomi shares soar to record highs as its new EV that undercuts Tesla draws strong response
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Chinese smartphone company Xiaomi priced its luxury YU7 SUV within expectations — but undercut Tesla's Model Y.
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June 27, 2025
02:29 AM
CNBC
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In the step in an intensifying price war, Chinese smartphone company Xiaomi revealed its luxury YU7 SUV will cost less than Tesla's Model Y
Xiaomi's luxury YU7 SUV will start at 253,500 yuan ($35,322), CEO Lei Jun announced Thursday, pointing out that is 10,000 yuan cheaper than Tesla's Model Y
People check out an electric SUV Xiaomi YU7 at a Xiaomi Store in Hangzhou in east China's Zhejiang vince Thursday, June 26, 2025
Feature China | Future Publishing | Getty ImagesHong Kong-listed s of China's Xiaomi surged over 5% to hit a record high on Friday, a day after its electric car drew a strong response from customers
The consumer electronics company, a relatively newer player in the EV market, took aim straight at rival Tesla with its new electric luxury vehicle, YU7
The SUV's pricing starts at 253,500 yuan ($35,322), CEO Lei Jun said Thursday, pointing out that the vehicle was 10,000 yuan cheaper than Tesla's Model Y, which starts at 263,500 yuan in China
The YU7 received more than 200,000 orders within just three minutes of its launch, Xiaomi said
Prior to the official price announcement, a Citi report had listed expectations that the YU7 SUV would be priced around 250,000 yuan to 320,000 yuan ($34,800 to $44,590), forecasting monthly sales of 30,000 units
Once the pace picks up, Citi predicts annual sales of 300,000 to 360,000 units
Xiaomi's company's SU7 sedan launched last year was also priced below Tesla's Model 3
Lei on Thursday claimed the YU7 beat Tesla's Model Y on a range of metrics, but still came short on driver assist
The YU7 comes with driver-assist software, the most advanced version of which is powered by Nvidia's Thor chip
Pre-sales start at 10 p
On Thursday, with deries expected within one to five weeks
FeaturesXiaomi had initially said it would launch its YU7 in July
The earlier event takes place amid an intensifying electric car price war
Xiaomi revealed its YU7 SUV in late May, less than a year after launching its first electric car, and claimed the vehicle would have a driving range of at least 760 kilometers (472 miles) on a single charge
That's well above the 719 kilometers advertised for Tesla's ext-range Model Y
Driving range has been a selling point for consumers worried frequent battery charging
While Xiaomi has not moted its artificial intelligence as much as other consumer brands, Thursday's launch event showcased several AI car features, such as allowing drivers to change a song using hand motions, or ask a phone app to describe where the car is parked
The YU7 also supports Apple Car Play and Apple Music, Lei said
Smart glassesThe Chinese smartphone and appliance company launched several other ducts on Thursday, including highly-anticipated artificial intelligence-connected glasses
The AI glasses, which rival Meta's Ray Bans smart offering, can change the tint of the lenses and scan a QR code to make payments, mimicking China's mobile smartphone apps
Xiaomi also announced similar features to those of the Meta glasses, such as being able to take photos and s, as well as use interactive AI to identify a flower or translate text
Xiaomi's AI glasses start at 1,999 yuan ($279)
A Xiaomi spokesperson said there were currently no plans to sell the glasses overseas
Meta's version isn't officially sold in China
Weekly analysis and insights from Asia's largest economy in your inbox now — CNBC's Ying Shan Lee contributed to this report.
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