What's happened
Xiaomi's YU7 electric SUV received over 289,000 pre-orders within the first hour of its launch on June 26, 2025, priced at around $35,000. The vehicle aims to compete with Tesla's Model Y, leveraging advanced tech and affordability amid rising Chinese EV competition and Tesla's market challenges.
What's behind the headline?
Xiaomi's YU7 has caused a significant shake-up in China's EV landscape, with over 289,000 pre-orders in the first hour, surpassing initial expectations and highlighting strong consumer confidence. The vehicle's competitive pricing, advanced self-driving features, and integration of Xiaomi's tech ecosystem position it as a serious challenger to Tesla's dominance. Xiaomi's ability to leverage its extensive consumer electronics experience gives it an edge in in-car technology, which Tesla has been somewhat behind on, especially in driver assistance systems. The rapid pre-order response indicates Xiaomi's potential to capture a substantial market share, especially as Tesla faces increased competition and regulatory hurdles in China. The success of the YU7 also underscores the shifting power dynamics in the Chinese EV market, where tech giants are now competing directly with traditional automakers, and the market is moving towards more affordable, tech-rich vehicles. Tesla's current market share is declining, and the company may need to lower prices or enhance its tech offerings to stay competitive. The broader implication is that Chinese EV manufacturers are now setting the pace for innovation and affordability, which could reshape global EV industry standards in the coming years.
What the papers say
The South China Morning Post reports Xiaomi's YU7 received 200,000 pre-orders within three minutes of opening, with total pre-orders reaching 240,000 by the next day, reflecting unprecedented demand in China’s EV market. Business Insider UK highlights Xiaomi's rapid growth, with over 289,000 pre-orders in the first hour, and notes the vehicle's competitive features and pricing. The Bloomberg article emphasizes Xiaomi's strategic challenge to Tesla, with Lei Jun directly comparing the YU7 to the Model Y and criticizing Tesla's tech lag in China. Both sources underscore Xiaomi's aggressive push into the EV space, leveraging its tech ecosystem and competitive pricing to challenge Tesla's market dominance, which is waning in China due to rising local competition and Tesla's higher prices. The articles collectively illustrate a market in flux, with Xiaomi emerging as a formidable contender, driven by consumer enthusiasm and technological innovation.
How we got here
Xiaomi entered the EV market four years ago, initially with the SU7 sedan, which outsold Tesla's Model 3 in China. The YU7, launched in June 2025, is Xiaomi's second model, designed to target the popular SUV segment and directly compete with Tesla's Model Y. The Chinese EV market has seen rapid growth, with domestic brands like BYD, Nio, and Xpeng expanding aggressively, supported by government policies and consumer demand for high-tech, affordable EVs.
Go deeper
Common question
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What Makes Xiaomi's YU7 a Strong Competitor to Tesla's Model Y?
Xiaomi's recent launch of the YU7 electric vehicle has stirred significant interest in the automotive market, especially as it aims to rival Tesla's Model Y. With over 289,000 orders within the first hour of its launch, many are curious about what features and pricing strategies make the YU7 a formidable competitor. Below, we explore key questions surrounding this exciting new entry into the electric vehicle landscape.
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What Makes Xiaomi's YU7 a Game Changer in the EV Market?
Xiaomi's YU7 has taken the electric vehicle market by storm, receiving an astonishing 240,000 orders within just 18 hours of its launch. This unprecedented demand raises questions about its features, pricing, and how it stacks up against competitors like Tesla. Here, we explore the standout aspects of the YU7 and its implications for the EV landscape in China.
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How Does Xiaomi's YU7 Compare to Tesla's Model Y in the EV Market?
Xiaomi's recent entry into the electric vehicle market with the YU7 has sparked significant interest, especially in comparison to Tesla's Model Y. With over 289,000 pre-orders in just the first hour, the YU7 is making waves. This page explores key comparisons, market implications, and what this means for consumers and the EV landscape.
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How Does the Xiaomi YU7 Compare to the Tesla Model Y?
The launch of Xiaomi's YU7 SUV has stirred excitement in the electric vehicle (EV) market, especially as it aims to rival the well-established Tesla Model Y. With over 289,000 pre-orders in just one hour, the YU7 is making waves. But how does it stack up against Tesla's popular offering? Here are some key comparisons and insights into what makes the YU7 a noteworthy contender.
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Can Xiaomi's YU7 Challenge Tesla in China?
The launch of Xiaomi's YU7 electric SUV has sparked widespread interest in China's competitive EV market. With over 289,000 pre-orders in just the first hour, many wonder if Xiaomi can truly challenge Tesla's dominance. This page explores Xiaomi's strategy, the current state of the Chinese EV scene, and what this means for consumers and competitors alike.
More on these topics
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Xiaomi Corporation is a Chinese electronics company founded in April 2010 and headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile apps, laptops, bags, earphones, shoes, fitness bands, and many other products.
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Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale and, through its acquisition of SolarCity, solar
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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The Tesla Model Y is a battery electric compact crossover SUV produced by Tesla, Inc. since 2020. The vehicle was presented in March 2019 as the company's fifth production model since its inception after the Roadster, Model S, Model X and Model 3.
After..
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Lei Jun (born 16 December 1969) is a Chinese billionaire entrepreneur and computer engineer. He is known for being the founder, chairman, and CEO of the consumer electronics company Xiaomi. He also is the chairman of Kingsoft and Shunwei Capital. Lei...
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Ford Motor Company, commonly known as Ford, is an American multinational automaker that has its main headquarters in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903.
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BYD Company Limited or BYD is a publicly listed Chinese multinational manufacturing conglomerate headquartered in Shenzhen, Guangdong, China.
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