In just one hour, Xiaomi’s YU7 electric SUV racked up 289,000 orders, blowing past all expectations and sending shockwaves through the global EV industry. That’s nearly three times more than the orders for Xiaomi’s first car, the SU7 sedan, last year.
This isn’t just another product launch. It’s a declaration of war. And Tesla’s Model Y, the long-time SUV leader in China, might be its first major casualty.
Performance meets range.
The entry-level standard model of #XiaomiYU7 delivers 835 km (CLTC) of range with its 96.3 kWh battery. #NewBeginnings pic.twitter.com/yqWpEVGN7g
— Xiaomi (@Xiaomi) June 26, 2025
A better SUV at a lower price
The YU7 is priced at 253,500 yuan (around $35,360)—4% cheaper than the Model Y. But it’s not just about price. Xiaomi is offering better specs, faster performance, and smarter tech. Analysts at Jefferies say the YU7 beats Tesla on most fronts, despite being cheaper.
And the Chinese market is clearly listening. The YU7’s launch wasn’t just big—it was historic.
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Tesla’s China problem keeps getting worse
Tesla’s grip on China is slipping. Its EV market share fell from 15% in 2020 to just 7.6% in early 2025. Now, with the YU7’s explosive debut, things could get even worse.
Tesla has already lost the monthly sales race to Xiaomi’s SU7 sedan since December. Now, with the YU7, it’s set to lose even more ground in the high-demand SUV segment.
Analysts are sounding the alarm
Experts at Citi and Jefferies say Tesla will need to fight back—fast. That could mean price cuts, free Full Self-Driving software, or new financing incentives. If not, it may keep losing ground to Xiaomi’s rising auto empire.
So far, Tesla hasn’t responded.
Xiaomi is on fire—literally
After the YU7’s reveal, Xiaomi’s stock surged 8%, hitting a record high before settling with a 3% gain. The stock has soared over 70% this year, making Xiaomi the best performing large-cap stock in Asia-Pacific, according to LSEG data.
From smartphones to EVs, Xiaomi isn’t just entering the auto race—it’s coming for the crown.
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