Xiaomi’s new EV gets 200000 orders in 3 minutes, cheaper than Tesla Model Y

Xiaomi Electrifies the EV Market with New YU7 SUV

Xiaomi officially launched its second electric vehicle, the YU7 SUV, on June 26, 2025, capturing immediate attention across the auto industry. It is designed to compete directly with Tesla’s Model Y. 

The YU7 offers extended range, a sleek design, and advanced connectivity, all at a lower price. As Xiaomi expands its electric ambitions, this SUV marks a significant milestone in its move from tech to transportation.

YU7 Secures 200,000 Orders in Just Three Minutes

In a record-setting debut, Xiaomi’s YU7 secured more than 200,000 pre-orders within three minutes of its launch. By the one-hour mark, orders had climbed to 289,000. 

This unprecedented demand reflects not only the intense anticipation among Chinese consumers but also Xiaomi’s rapidly growing reputation as a credible EV maker with serious mass-market appeal and delivery capabilities.

Priced to Disrupt: Xiaomi Undercuts Tesla’s Model Y

Starting at 253,500 yuan, roughly $35,360, the YU7 is more affordable than the base Tesla Model Y in China, which starts at around $36,800. This competitive pricing gives Xiaomi a serious edge in one of the world’s most price-sensitive markets. 

For buyers comparing performance, tech features, and range, the YU7 delivers a compelling package likely to shake up the EV hierarchy.

835 KM Range Offers More Mileage Than Model Y

The YU7 boasts a maximum driving range of 835 kilometers (519 miles) on a single charge, based on China’s CLTC standards. This figure surpasses Tesla’s Model Y, which tops around 719 kilometers (446 miles). 

While real-world mileage often varies, this headline number helps Xiaomi market its new SUV as a high-endurance EV that competes with or exceeds current industry benchmarks.

From Smartphones to SUVs: Xiaomi’s EV Evolution

Once known solely for affordable smartphones and home gadgets, Xiaomi is making serious inroads into the electric vehicle market. The YU7 represents the company’s second EV after the SU7 sedan. 

Together, these models signal Xiaomi’s strategic pivot toward becoming a full-fledged mobility provider that integrates its tech ecosystem with smart, stylish vehicles designed for mass adoption.

CEO Lei Jun Calls Demand for YU7 “Miraculous”

Xiaomi CEO Lei Jun described early demand for the YU7 as “miraculous,” citing the overwhelming response to validate the company’s bold move into EVs. 

Jun, the public face of Xiaomi’s mobility ambitions, expressed confidence in the brand’s ability to scale production and deliver high-quality vehicles while keeping prices competitive in an increasingly crowded market.

Pro and Max Trims Offer Luxury for Less

Beyond the base model, the YU7 comes in two premium trims: the Pro, priced at 279,900 yuan ($39,000), and the Max at 329,900 yuan ($46,000). These versions offer larger battery packs, more powerful motors, and advanced semi-autonomous driving features. 

Even at these higher price points, Xiaomi undercuts comparable luxury EVs from Tesla, BYD, and international rivals.

Xiaomi Takes Direct Aim at Tesla’s Best Seller

The YU7 is no random release; it’s a calculated strike against the Tesla Model Y, China’s best-selling SUV in the electric space. 

With similar size, improved specs, and a lower price, Xiaomi is signaling it’s ready to compete head-on with Tesla in its most successful category. CEO Lei Jun dubbed it a “Model Y killer” during launch week.

China’s EV Battle Intensifies with Xiaomi’s Entry

China is already the world’s most competitive EV market, and Xiaomi’s arrival heats things even further. Legacy automakers like Volkswagen and Toyota, homegrown giants like BYD, and newcomers like Nio are all fighting for attention. 

Xiaomi’s smartphone-era customer base and ecosystem strategy give it a potential advantage in capturing the tech-savvy, value-conscious consumer segment.

Tesla Faces Slowing Momentum in China Amid Local Competition

While Tesla remains a key player in China’s EV market, its year-over-year growth has slowed significantly in 2025. According to data from the China Passenger Car Association (CPCA), Tesla saw flat to low-single-digit growth in monthly deliveries during Q2. 

At the same time, local competitors like BYD and Xiaomi posted double-digit gains. Analysts cite increasing domestic competition and price sensitivity among Chinese buyers.

Xiaomi Promotes Cross-Device Integration with YU7 SUV

Xiaomi has promoted its YU7 as more than just a vehicle, as it supports integration with its HyperOS, which powers Xiaomi phones, tablets, and smart home products. 

While deep intelligent home-to-vehicle control is still developing, features like remote climate control, GPS syncing, and inter-device data sharing are already active, enhancing convenience for existing Xiaomi ecosystem users.

Xiaomi SU7 Sedan Beats Tesla’s Model 3 in Sales

Before launching the YU7, Xiaomi introduced the SU7 sedan, quickly overtaking Tesla’s Model 3 in monthly Chinese sales. This early success gave the company credibility in the EV market and demonstrated that Chinese buyers are willing to trust Xiaomi with their mobility needs. 

The YU7 builds on that momentum, targeting the more popular SUV category.

Stock Soars After Record-Breaking Preorders

Following the YU7’s explosive debut, Xiaomi stock surged by approximately 8% daily. Investors responded positively to the vehicle’s features and the sheer scale of demand. 

Financial analysts say the successful launch positions Xiaomi as a serious disruptor, not just in tech or autos, but in broader consumer mobility. In this new sector, software and hardware intersect.

Xiaomi Aims to Deliver 350,000 EVs in 2025

Xiaomi targets delivering 350,000 electric vehicles this year, including the SU7 sedan and YU7 SUV. While ambitious, the goal looks achievable given early order volume and factory readiness. 

The company also projects that its EV business could become profitable in the second half of 2025, marking a rapid financial turnaround for a newcomer in the space.

Partnerships with BYD and Nissan Help Scale Fast

Xiaomi has partnered with major manufacturers like BYD, Nissan, and GAC Toyota to meet high demand. These collaborations allow Xiaomi to tap into established production lines, supply chains, and R&D capabilities. 

As a new EV brand, Xiaomi avoids building every piece in-house, an efficient strategy that speeds up production and ensures quality without overextending resources early on.

Curious what that future looks like up close? Take a look inside this Xiaomi store that’s changing how we shop for EVs.

Xiaomi Eyes International Expansion, Starting with Southeast Asia

Though the YU7 is only sold in China, Xiaomi has hinted at expanding into Southeast Asian EV markets in 2026. The company has registered trademarks and studies regulatory environments in Thailand, Malaysia, and Indonesia. 

Analysts say its success in international markets will depend on pricing, service infrastructure, and long-term brand trust outside China.

Meanwhile, Tesla’s having trouble moving its newest model. See why Cybertrucks aren’t flying off the lots.

What’s your take on Xiaomi taking on Tesla? Drop a comment below and hit like if you’re excited to see how this battle plays out.

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This slideshow was made with AI assistance and human editing.