Xiaomi Enters the Electric Car Race, Challenges Tesla

Xiaomi, the Chinese company known primarily for its smartphones, has launched its new electric car, the YU7, with a starting price of 253,500 yuan, 10,000 yuan less than the Tesla Model Y, in a clear attempt to enter the market and compete with industry giants.

The new car made its debut at Xiaomi showrooms in Beijing, and initial specifications indicate that the YU7 goes beyond price competition, offering a driving range of up to 835 kilometers on a single charge, compared to the 719 kilometers of the updated Model Y launched by Tesla last January. The base model of the YU7 will be available for 253,500 yuan (approximately $35,364), while the YU7 Pro is priced at 279,900 yuan, and the top-of-the-range YU7 Max goes up to 329,900 yuan.

Xiaomi has begun accepting orders for all versions, targeting a wide range of consumers looking for smart electric vehicles at a competitive price.

This comes at a time when Tesla topped China’s SUV sales in May, making competition in the world’s largest market even fiercer. The competition includes not only Tesla but also emerging Chinese brands such as the Zeker 7X and Li Auto L6.