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Xiaomi’s YU7 SUV hits 289,000 orders at launch, piling pressure on Tesla

The YU7’s initial demand was nearly three times higher than that of the SU7 sedan

Xiaomi YU7 orders Tesla pressure

Xiaomi’s SU7 has already outsold Tesla’s Model 3 in China

Reuters
Gayathri Kallukaran
By Gayathri KallukaranJun 27, 2025
Gayathri Kallukaran
Gayathri Kallukaran is a Junior Journalist with Eastern Eye. She has a Master’s degree in Journalism and Mass Communication from St. Paul’s College, Bengaluru, and brings over five years of experience in content creation, including two years in digital journalism. She covers stories across culture, lifestyle, travel, health, and technology, with a creative yet fact-driven approach to reporting. Known for her sensitivity towards human interest narratives, Gayathri’s storytelling often aims to inform, inspire, and empower. Her journey began as a layout designer and reporter for her college’s daily newsletter, where she also contributed short films and editorial features. Since then, she has worked with platforms like FWD Media, Pepper Content, and Petrons.com, where several of her interviews and features have gained spotlight recognition. Fluent in English, Malayalam, Tamil, and Hindi, she writes in English and Malayalam, continuing to explore inclusive, people-focused storytelling in the digital space.
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Key points

  • Xiaomi’s new YU7 SUV secures 289,000 orders within the first hour
  • Demand exceeds expectations and beats the previous SU7 launch
  • Analysts predict Tesla may lose more market share in China
  • Tesla could be forced to cut prices or offer more incentives to stay competitive

Xiaomi’s YU7 SUV triggers record-breaking demand

Xiaomi’s second electric vehicle, the YU7 SUV, received a staggering 289,000 orders within just one hour of launch, sending the company’s share price to a record high and intensifying competition in the electric vehicle (EV) market.

The YU7’s initial demand was nearly three times higher than that of the SU7 sedan, launched in March 2024, and significantly exceeded market expectations of around 100,000 orders. Priced from 253,500 yuan (approximately £28,000), the YU7 undercuts Tesla’s Model Y by nearly 4% while offering superior performance, according to analysts.

Tesla’s market share under renewed threat

Tesla, which currently sells China’s best-selling SUV, the Model Y, may face increasing pressure from local rivals such as Xiaomi. Analysts say the surge in YU7 orders is a clear sign that Tesla’s dominance in the Chinese EV market is eroding.

The US-based automaker’s share of China’s EV market has dropped steadily from 15% in 2020 to 10% in 2024, and to 7.6% in the first months of 2025.

Xiaomi YU7 orders Tesla pressure Tesla has not yet commented on the situationReuters

Xiaomi’s SU7 has already outsold Tesla’s Model 3 in China on a monthly basis since December. With the YU7’s competitive pricing and specifications, analysts at Jefferies believe it could accelerate Tesla’s market share decline.

Possible Tesla response

Citi analysts suggested that Tesla may be forced to reduce prices again, offer its Full Self-Driving software at no extra cost, or provide more financing incentives to maintain its position in the Chinese market. Tesla has not yet commented on the situation.

Market reaction

Xiaomi’s shares rose 8% in early trading on Friday, reaching an all-time high before settling at a 3% gain. The company’s stock has climbed over 70% so far in 2025, making it the best-performing large-cap stock in the Asia-Pacific region, according to LSEG data.

The sharp increase in valuation brings Xiaomi’s market cap to nearly $200 billion, solidifying its position as a major new player in the EV industry.

teslachinaelectric carxiaomi

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