Xiaomi’s Sedan Crushed Tesla’s Model 3 In China; Now Its SUV Is Gunning For Model Y

Xiaomi has received a significantly high number of orders for its YU7 SUV in China, which pitches the recently launched electric sports utility vehicle as a major threat to Elon Musk-led Tesla's Model Y.

Xiaomi, within 18 hours of opening the sales on Wednesday, received 240,000 orders for YU7 SUV that it confirmed to be 'locked-in', according to news agency Reuters. The figures have likely only increased from there.

The YU7 may be Tesla's most powerful competitor due to it undercutting Tesla's Model Y's prices by 4%. It has been priced at 253,500 yuan, as against 263,500 yuan charged for Model Y.

The SU7, which was the phone company's first major foray into the electric vehicle space, was considered a major success, outselling Tesla's Model 3 in China every month since December 2024.

Analysts speculate that the YU7's debut is going to lead to more market share loss for Tesla. The EV-maker's slice of the Chinese market EV pie has gotten thinner and thinner, decreasing from 15% in 2020 to 7.6% in the first five months of 2025.

The Xiaomi YU7 also has a superior driving range of 835 km from a single charge as compared to the Model Y's 719 km. This is due to the latter having a smaller battery of 78.4 kWh compared to the YU7's 96.3 kWh.

Tesla also charges an extra 64,000 yuan for access to its smart driving software feature. The YU7 does not have additional charges for its 'drive-assistance' software and also has drawers in the backseat for storage.

Analysts at Citi, cited by Reuters, stated that Tesla might have to slash prices and offer its smart driving for free to compete with Xiaomi.