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Xiaomi’s YU7 Electric Car challenges Tesla’s Model Y with Lower Price and High Demand
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By Amelia Green | BEIJING – 2025/06/27 11:02:11
Xiaomi YU7 Foto: CFOTO / imago stock&people / Profimedia
The electric vehicle market is heating up as Chinese tech giant Xiaomi has launched its YU7 car, a direct competitor to Tesla’s Model Y, with a more affordable price tag. The launch has seen massive demand, with hundreds of thousands of orders placed within minutes.
Xiaomi, known for its smartphones and other electronics, announced via the Chinese social network Weibo that it received over 200,000 orders for the YU7 in just three minutes following its launch in Beijing. The company followed up with another post stating that within an hour, orders had surpassed 289,000.
The YU7 starts at $35,000, positioning it as a cheaper alternative to the Tesla Model Y, which begins at $36,760 in China. This price difference, coupled with potentially superior specifications, has fueled the initial surge in demand.
Xiaomi CEO Takes Aim at Tesla
During the launch event, Xiaomi founder and CEO, lei Jun, directly addressed Tesla and its CEO, Elon Musk. “Tesla said before:” Continue and compare,”and we,at Xiaomi,simply do not except the defeat. Today we officially accept the Tesla invitation to compare,” said lei on Thursday.
“Tesla said before:” Continue and compare, “and we, at Xiaomi, simply do not accept the defeat. Today we officially accept the tesla invitation to compare,”
The market responded positively to the launch, with Xiaomi shares increasing by 8% in Hong Kong on Friday, reaching a record high. The stock closed the day up by approximately 3.6%, trading at nearly $59 Hong Kong.
Analysts Weigh In
Analysts are also optimistic about the YU7’s potential. “Yu7 seems to be sold like hot bread despite the slightly higher prices” than estimated ones, “Jefferies analysts wrote by Edison Lee wrote on Thursday.
“The price of Yu7 is easy below the Tesla model Y, but it offers much better specifications/performances,” the analysts wrote. “The Y model is the main target of YU7 and, therefore, we expect YU7 to be able to take over the market share from the Y model.”
The YU7 is Xiaomi’s second foray into the electric vehicle market, following the release of its SU7 sedan last year.
Frequently Asked Questions
- what is the price difference between the Xiaomi YU7 and Tesla Model Y?
- The Xiaomi YU7 starts at $35,000, while the Tesla Model Y starts at $36,760 in China.
- How many orders did Xiaomi receive for the YU7 in the first hour?
- Xiaomi received over 289,000 orders for the YU7 within the first hour of its launch.
- What was the impact on Xiaomi’s stock price after the YU7 launch?
- Xiaomi shares increased by 8% in Hong Kong following the launch.
