Exceptionally strong initial orders for Xiaomi’s Yu7 electric sport vehicle sent shares to the newcomer newcomer to a maximum record on Friday, and took advantage of the speculation that Tesla could have to reduce prices to fight.
In the first 18 hours after the Yu7 went on sale, Xiaomi received about 240,000 orders he considers closed, with buyers who had paid a raised car tank ready to surrender or a smaller tank for the cars that can still be made.
The Smartphone and the apparatus made a great leap in the China electric vehicle market with the launch of their first vehicle, the Su7 Sedan, in March last year. The car has passed Tesla Model 3 in China since December and has even obtained a quick review of Ford’s CEO Jim Farley.
The Yu7 is only its second model and is priced at 253,500 yuans ($ 35,360), emphasizing Tesla model almost 4%. This will probably lead to more market share losses for the North -American car maker, the analysts said.
In a Beijing Xiaomi car showroom, dozens of people gathered around Yu7.
Otto Shi, a 26-year-old Tesla Model owner who works in finance, said he was thinking of obtaining a Yu7 for his father who currently leads a Mercedes-Benz.
“We could turn around to drive model y and yu7,” he said, adding that he was impressed by Xiaomi’s skill on supply chains and Su7 success had led him to believe that Xiaomi is the ideal Chinese brand to change.
Xiaomi’s shares shot 8% higher in early trade up to a maximum of time, but then gains were made to close 3.6%. They have increased by more than 70% to this year to evaluate the company at approximately $ 190 billion, making it the best performance of major shares in Pacific Asia, according to LSEG data.
What can Tesla do?
As national rivals gain more and more on Chinese consumers with new functions, the Chinese EV Market Tesla share has dropped from a 15% peak by 2020 to 10% last year, and again, up to 7.6% for the first five months of 2025.
Citi analysts said in a note to customers that they may have to reduce their prices even more, offer their “Full Self-Driving” driver’s support software (FSD) for free and offer more financing incentives if it comes to successfully competing with Xiaomi.
Tesla, who counts China as the largest market according to the sales numbers of the first quarter, did not respond immediately to a comment request. Last year, China represented about one -fifth of its income.
While Xiaomi’s CEO, Lei Jun, acknowledged that Tesla’s driving software was higher, he presented a number of other functions that said that Yu7 beat Model Y.
The base model of the YU7 is equipped with a package of batteries of 96.3 kWh, which offers a driving range of up to 835 km (519 miles) with a single load and that supports a rapid load of high power.
This is compared to a maximum range of 719 km for the Tesla y redesigned model, which uses a battery of 78.4 kWh smaller.
Its subsequent seats have drawers for storage and software of the YU7 controller has no additional charge, while Tesla charges 64,000 yuans for its smart driving software.
On Thursday night, Xiaomi said he had received 289,000 orders for the IU7 in the first hour after he went on sale, more than three times the level of his Su7 when he launched.
Lei said, however, that the chisalpelles were probably a part of orders. On the Chinese Chianyu platform, on Friday there were hundreds of people seeking to sell their position at the tail of orders to others.
In order to mitigate this warm -up, Xiaomi now limits each customer to buy a maximum of two cars.
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Image Source : nypost.com