Auto • Jun 27, 2025

Xiaomi's new SUV challenges Tesla's dominance

Xiaomi has officially jumped into the electric car game with its YU7 SUV, aiming straight at Tesla's Model Y.
The big highlight? It's priced at 253,500 yuan (about $35,367), making it $1,395 cheaper than the Model Y in China.
Xiaomi's founder Lei Jun made sure to spotlight this price edge during the launch.

TL;DR

Xiaomi's aggressive pricing could push other EV brands to rethink strategies

The buzz was real—Xiaomi's stock shot up as much as 8% after the reveal, and preorders hit a massive 289,000 units in just one hour.
This aggressive pricing could push other EV brands like XPeng and BYD to rethink their strategies.
With Chinese EV makers already locked in a price war, all eyes are now on how Xiaomi's first EV stacks up against its strong smartphone business in upcoming earnings reports.