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New York Post
14 hours ago
- Automotive
- New York Post
Chinese customers snapping up this Tesla rival's new SUV in bad sign for Elon Musk
Exceptionally strong initial orders for Xiaomi's YU7 electric sport utility vehicle sent shares in the automotive newcomer to a record high on Friday and fanned speculation that Tesla may have to cut prices to fight back. In the first 18 hours after the YU7 went on sale, Xiaomi received some 240,000 orders that it considers locked in, with buyers having paid either a hefty deposit for ready-to-deliver cars or a smaller deposit for cars still to be made. The smartphone and appliance maker made a huge splash in China's electric vehicle market with the launch of its first vehicle, the SU7 sedan, in March last year. The car has outsold Tesla's Model 3 in China on a monthly basis since December and has even earned a rave review from Ford CEO Jim Farley. 4 In the first 18 hours after the YU7 went on sale, Xiaomi received some 240,000 orders, with buyers having paid either a hefty deposit for ready-to-deliver cars or a smaller deposit for cars still to be made. CEO Lei Jun, above. AFP via Getty Images The YU7 is only its second model and priced from 253,500 yuan ($35,360), it undercuts Tesla's Model Y by nearly 4%. That will likely lead to more market share loss for the US automaker, analysts said. At one Xiaomi car showroom in Beijing, dozens of people were gathered around the YU7. Otto Shi, a 26-year-old Tesla Model Y owner who works in finance, said he was considering getting a YU7 for his father who currently drives a Mercedes-Benz. 'We could take turns to drive the Model Y and YU7,' he said, adding that he was impressed by Xiaomi's prowess in supply chains and the SU7's success had made him believe Xiaomi is the ideal Chinese brand to switch to. Xiaomi's shares shot 8% higher in early trade to an all-time high but later pared gains to close up 3.6%. They have risen by more than 70% so far this year to value the company at roughly $190 billion, making it the best performing large-cap stock in Asia Pacific, according to LSEG data. 4 Xiaomi shares have risen by more than 70% so far this year to value the company at roughly $190 billion. AFP via Getty Images What can Tesla do? As domestic rivals increasingly win over Chinese consumers with snazzy new features, Tesla's share of the Chinese EV market has fallen from a peak of 15% in 2020 to 10% last year and then again to 7.6% for the first five months of 2025. Citi analysts said in a note to clients that it may have to cut prices further, offer its 'Full Self-Driving' (FSD) driver assistance software for free and offer more financing incentives if it is to compete successfully with Xiaomi. Tesla, which counts China as its biggest market according to first-quarter sales numbers, did not immediately respond to a request for comment. Last year, China accounted for roughly a fifth of its revenue. 4 Analysts said Elon Musk's Tesla may have to cut prices further, offer its 'Full Self-Driving' (FSD) driver assistance software for free and offer more financing incentives if it is to compete successfully with Xiaomi. AFP via Getty Images While Xiaomi CEO Lei Jun acknowledged that Tesla's driving assistance software was superior, he touted a range of other features where he said the YU7 outperformed the Model Y. The YU7's base model is equipped with a 96.3 kWh battery pack, offering a driving range of up to 835 km (519 miles) on a single charge and supporting high-power fast charging. That compares with a maximum range of 719 km for the redesigned Tesla Model Y, which uses a smaller 78.4 kWh battery. 4 The YU7's base model is equipped with a 96.3 kWh battery pack, offering a driving range of up to 519 miles on a single charge and supporting high-power fast charging. Its backseats have drawers for storage under them and the YU7's driver assistance software comes at no extra charge while Tesla charges 64,000 yuan for its smart driving software, he added. On Thursday night, Xiaomi said it had received 289,000 orders for the YU7 in the first hour after it went on sale, more than three times the level for its SU7 when it launched. Lei has said, however, that a portion of orders was likely being placed by scalpers. On Chinese secondhand platform Xianyu, there were hundreds of people on Friday looking to sell their position in the order queue to others. Aiming to mitigate such scalping, Xiaomi is now limiting each customer to purchasing two cars at most.
Mint
15 hours ago
- Automotive
- Mint
Xiaomi YU7 SUV, company's second EV, receives 240000 orders in 18 hours; challenges Tesla in China
Xiaomi's latest electric SUV, the YU7, has triggered a buying frenzy in China, racking up around 240,000 orders within just 18 hours of launch, a performance that sent the company's shares soaring to a record high on Friday. The orders, considered firm by Xiaomi, include both large deposits for vehicles ready for delivery and smaller sums for those yet to be produced. The overwhelming demand underlines the smartphone giant's growing foothold in the electric vehicle (EV) sector, as it intensifies competition with established players like Tesla. This marks Xiaomi's second foray into the EV market, following the successful debut of its SU7 sedan in March last year. Priced from 253,500 yuan (approximately $35360), the YU7 undercuts Tesla's Model Y by nearly four per cent, further fuelling speculation that the US automaker may need to respond with price cuts or new incentives to maintain its market share. 'Tesla may be forced to reduce prices further or consider bundling its Full Self-Driving (FSD) system for free to stay competitive,' said Citi analysts in a client note. The YU7's specifications are also attracting attention. Its standard model includes a substantial 96.3 kWh battery pack offering a claimed range of up to 835 kilometres (519 miles) on a single charge, significantly more than the 719-kilometre range of the redesigned Tesla Model Y, which has a smaller 78.4 kWh battery. The YU7 also offers rapid charging capabilities and a number of consumer-focused features, including under-seat storage drawers and free driver-assistance software, a feature that costs an additional 64,000 yuan on Tesla's models. While acknowledging Tesla's superiority in autonomous driving, Xiaomi CEO Lei Jun argued that the YU7 surpasses the Model Y in several other areas. 'We are offering more value where it counts for Chinese drivers,' he said at the launch event. The company claimed 289,000 YU7 orders were logged within the first hour of sales on Thursday night, over three times the figure achieved by the SU7 at its debut. However, Lei cautioned that some of these may come from scalpers attempting to resell their early positions in the queue. Hundreds of listings offering order slots were spotted on the secondhand trading platform Xianyu. In response, Xiaomi has implemented a two-vehicle purchase cap per customer to deter scalping and ensure fairer distribution. (With inputs from Reuters)
Yahoo
15 hours ago
- Automotive
- Yahoo
Xiaomi says it received over 200,000 orders for a new car it priced just below Tesla's Model Y in 3 minutes
Xiaomi said it sold more than 200,000 YU7 cars within three minutes of its Beijing launch. The YU7, priced at $35,000, aims to compete with Tesla's Model Y in China. Xiaomi's stock rose as much as 8% in Hong Kong on Friday. Xiaomi launched a car just slightly cheaper than Tesla's Model Y, and it has already attracted hundreds of thousands of buyers. In a Weibo post on Thursday, the Chinese smartphone and electric vehicle maker said it received over 200,000 orders for the YU7 within three minutes of its launch in Beijing. Within an hour of the sale starting, it had more than 289,000 orders for the car, Xiaomi wrote in a second post. The car, which starts at $35,000, is a competitor for the Model Y, China's most popular SUV, which starts at $36,760. Xiaomi's founder and CEO, Lei Jun, repeatedly took jabs at Tesla during the launch event. "Tesla previously said, 'Go ahead and compare,' and we at Xiaomi just won't accept defeat. Today we officially take up Tesla's invite to compare," Lei said on Thursday. Tesla and CEO Elon Musk did not immediately respond to a request for comment from Business Insider. Xiaomi's stock rose 8% to a record high on Friday in Hong Kong following strong order demand. It ended the day up about 3.6% at almost 59 Hong Kong dollars. "YU7 seems to be selling like hot cakes despite slightly higher pricing" than estimated, Jefferies analysts led by Edison Lee wrote in a note on Thursday. "YU7's pricing is slightly below that of Tesla Model Y, but it offers much better specs/performance," the analysts wrote. "Model Y is the main target of YU7, and thus we expect YU7 would be able to take market share from Model Y." Chinese players, including Xiaomi, BYD, the world's largest EV company by sales volume, Nio, and Xpeng, have been undercutting Tesla's prices and gaining market share in China and Europe. The YU7 unveiling adds to the growing EV price war — and Tesla's headaches in the Chinese market. The YU7 is Xiaomi's second car since the company entered the EV sector last year with its SU7 sedan. It is priced below Tesla's Model 3 and has sold more cars than Tesla's Model 3 in China every month since December. It's also attracting some big-name fans in the US. In October, Ford's CEO Jim Farley said he didn't want to give up the Xiaomi SU7 he had been driving for the past half year. Xiaomi's stock is up 72% this year on the back of strong SU7 sales, continued success in the smartphone market, and the addition of home appliances to its product offering. Read the original article on Business Insider Sign in to access your portfolio
The Star
17 hours ago
- Automotive
- The Star
Xiaomi shares surge after new SUV gets 289,000 orders in an hour
FILE PHOTO: Xiaomi founder and CEO Lei Jun introduces the Chinese smartphone maker's new electric SUV YU7 at a launch event in Beijing, China May 22, 2025. REUTERS/Florence Lo/File Photo Xiaomi Corp.'s shares rose 8% to a lifetime high after the smartphone maker drew strong initial orders for a $35,000 sport utility vehicle intended to compete with Tesla Inc.'s Model Y in China. The company on Thursday took the wraps off the 253,500 yuan ($35,360) YU7, debuting its second car in a crowded EV market while grappling with scrutiny over its assisted-driving technology. Xiaomi drew a better-than-anticipated 289,000 orders in its first hour of availability. Xiaomi founder Lei Jun attacked Tesla head-on during Thursday's launch event, stacking his vehicle against the Model Y much as he compares Mi devices with the iPhone. The YU7's price tag - largely in line with analysts' expectations - comes in just under the 263,500 yuan for the latest version of the Model Y, China's most popular SUV. BYD Co.'s Tang L SUV, slightly smaller than the YU7, sells for between 239,800 yuan and 289,800 yuan. "We're going to face the biggest competitor, and also face fierce challenges from all the other manufacturers,' Lei said at the launch event in Beijing. Lei, who shot to fame with bold plans to unseat Apple Inc. in China, is counting on EVs to take on Elon Musk's Tesla and fuel the final chapter of his entrepreneurial career. He's pushed Xiaomi into new arenas from chip design to AI glasses, pledging to spend 200 billion yuan over five years to try and turn the Chinese company into a global device leader. The company began taking pre-orders Thursday with a 5,000 yuan deposit. In a surprise twist, Lei declared that buyers of Xiaomi's first car - the SU7 sedan - have three days to switch to the SUV if they haven't taken delivery of the original vehicle. Xiaomi announced shortly after the event it had processed more than 200,000 pre-orders for the YU7 within three minutes. "Consumer demand for Xiaomi's YU7 far exceeds our and market expectations, which should enable Xiaomi to continue consolidating its leadership position in the premium auto market in China,' Goldman Sachs Group Inc. analysts including Timothy Zhao wrote. They raised their price target on the stock 6% to HK$69. What Bloomberg Intelligence Says Xiaomi's launch of the YU7 SUV, and the option to switch existing SU7 sedan orders to YU7, could boost its EV sales growth to 209% in 2025. SUVs are more popular than sedans in China, and the new model complements Xiaomi's product line to widen its customer reach, potentially winning orders from Tesla and Nio. YU7 could contribute 41% of Xiaomi's EV deliveries in 2H and help beat its EV sales target by 13%. - Steven Tseng and Sean Chen, analysts The top model goes for 329,900 yuan and can travel 760 kilometers (470 miles) on a single charge and accelerates to 100 kilometers per hour in 3.23 seconds. They come in 9 colors, all equipped with lidar, which strengthens driver assistance technology, and an 800 volt platform for fast charging. Many feature the touches and amenities now familiar to Chinese drivers, from large touch screens and massage-chairs to drawers. The new model will be a key test of demand for Xiaomi cars after a fatal accident involving an SU7 sedan that sparked scrutiny from Chinese authorities and hammered orders. The YU7's debut coincides with heightened concerns from Chinese authorities about an extended price war. BYD, Xiaomi and more than a dozen other automakers were warned to self-regulate and prevent the use of "zero-mileage' used cars to inflate sales numbers and pay suppliers in a timely manner to improve the overall cash flow of the entire supply chain. Lei remains confident about the prospects for Xiaomi's foray into cars, predicting the new model will help the company's EV unit achieve profitability in the second half - one of the fastest brands to hit that milestone in the automotive sector. Investors have warmed to that vision, sending shares north. Now worth around $200 billion, it's bigger than BYD - the EV powerhouse that dominates the Chinese market - and its SU7 is outselling Tesla Model 3 so far this year. Beyond cars, Thursday's event also showcased a pair of 1,999 yuan black-rimmed AI glasses that can film video and answer questions off visual cues; the MIX Flip 2, Xiaomi's new folding phone; and a tablet that uses its in-house Xring O1 chip. - Bloomberg
TimesLIVE
a day ago
- Automotive
- TimesLIVE
Xiaomi takes aim at Tesla Model Y with more affordable YU7 EV
Chinese EV and smartphone maker Xiaomi on Thursday priced its new electric YU7 SUV from 253,500 yuan (R631,565), almost 4% below Tesla's Model Y, stepping up the challenge to the US firm in the world's largest car market. The YU7's base model costs 10,000 yuan (R24,913) less than the starting price of Tesla's Model Y in China, with the more premium models YU7 Pro and YU7 Max priced at 279,900 yuan (R697,334) and 329,900 yuan (R822,061) respectively. Xiaomi started taking orders for all three models on Thursday night, with orders hitting 200,000 three minutes after the sale started. The Model Y, China's best-selling SUV in May, starts at 263,500 yuan (R656,602) in China. Xiaomi said it will partner with BYD, GAC Toyota and Zhengzhou Nissan to build an ecosystem connecting humans, homes and cars. Xiaomi's CEO and founder Lei Jun has said he wants the YU7 to challenge the Model Y and analysts said it has the potential to succeed. Other rivals include Zeekr's 7X and Li Auto's L6. "The YU7 will serve as an early test of whether Xiaomi can broaden its appeal beyond early adopters and tech enthusiasts to become a serious player in the mass market EV segment," said Rosalie Chen, senior analyst at Third Bridge. The YU7 has a driving range of up to 835km per charge, compared with up to 719km for the redesigned Model Y launched in January. The YU7 is Xiaomi's second car since the Beijing-based firm entered the auto sector last year with its sporty electric SU7 sedan, which drew styling cues from Porsche and was priced below Tesla's Model 3. Since December, the SU7 has outsold Tesla's Model 3 in China on a monthly basis. The SU7's success expedites the company's EV bid despite intense competition in China's auto market. In March, Xiaomi raised its target for EV deliveries this year to 350,000 from earlier guidance of 300,000. The company has secured land in Beijing close to its existing car factory for 635-million yuan (R1.57bn), which it plans to use for a smart connected car and components project. Lei said in June he expected Xiaomi's auto business to become profitable in the second half of the year.
