WEBDESK, June 30, 2025 — In a stunning debut that marks a bold leap into the electric vehicle (EV) market, Chinese tech giant Xiaomi has received an overwhelming 289,000 pre-orders for its newly launched YU7 SUV — all within the first hour of release.
Xiaomi Founder and CEO Lei Jun hailed the launch as a “miraculous moment” for China’s automotive industry. “My goodness, in just 2 minutes, we received 196,000 paid pre-orders and 128,000 lock-in orders,” he said in a video statement. “We may be witnessing a miracle in China’s automotive industry.”
The five-seater YU7, priced from 253,500 yuan ($54,000), is Xiaomi’s second electric vehicle and strategically priced to undercut Tesla’s Model Y by nearly 4%. Tesla’s Model Y — currently China’s best-selling SUV — starts at 263,500 yuan ($56,000).
Market Buzz and Investor Reaction
Following the launch, Xiaomi’s shares on the Hong Kong stock exchange surged by 8%, eventually closing at a record high, signaling strong investor confidence in Xiaomi’s aggressive EV expansion strategy.
Known globally as the world’s second-largest smartphone maker, Xiaomi is leveraging its vast technological ecosystem and software integration expertise to position itself competitively in the EV market. Back in 2021, the company announced a $10 billion investment over a decade to enter the EV sector — a move backed by strong government support and local incentives.
EV Industry Impact: Tesla Targeted
During the launch event, Lei Jun made it clear: Xiaomi is aiming directly at Tesla. The YU7 SUV enters a crowded but rapidly growing market, bolstered by China’s domestic EV boom, which now contributes over 20% of global EV sales.
“Its pricing is just really reasonable — it’s in the same range as the Model Y,” said Shi, a 26-year-old Tesla owner in Beijing who is now considering a YU7 for his father. “Two weeks ago, Lei Jun said they were aiming straight at Tesla, and I think that’s completely justified.”
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However, experts caution that while Xiaomi’s early success is impressive, it faces challenges. Dr. Marina Zhang, China expert at the University of Technology Sydney, notes:
“Xiaomi’s success hinges on production execution, software differentiation, and global expansion. It’s unlikely to pose an immediate major threat to Tesla or BYD.”
Safety Concerns Still Linger
Xiaomi’s EV expansion is not without controversy. In March, the company faced scrutiny after a fatal crash involving its SU7 sedan, which was in “navigate on autopilot” mode. The incident, which claimed three student lives, raised fresh questions around autonomous driving safety.
According to Xiaomi, the vehicle had issued a risk warning and the driver attempted to take manual control before the car crashed into a cement pole at 97 km/h. The company submitted full telematics data to local authorities, but the crash has sparked broader concerns about the rollout of intelligent driving systems.
The Road Ahead
Despite the safety concerns, Xiaomi’s YU7 launch marks a major milestone for both the company and China’s broader ambition to become a global EV powerhouse. With customer enthusiasm soaring and Tesla squarely in its sights, Xiaomi is betting big on a future where technology seamlessly meets mobility.
