Latest news with #YU7
New York Post
7 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
7 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
8 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
Yahoo
8 hours ago
- Automotive
- Yahoo
Things just keep getting more difficult in China for Elon Musk's Tesla
Tesla is losing ground in China as local rivals gain market share and tech momentum. Xiaomi says its YU7 SUV got 200,000 orders in 3 minutes, posing a serious threat to Tesla's Model Y. Tesla's China sales fell 18% and its top manufacturing exec has reportedly left the company. Tesla's China nightmare just deepened — again. The latest blow came from Chinese smartphone and electric vehicle maker Xiaomi, which announced Thursday it had received close to 300,000 orders for its new YU7 electric SUV within an hour of its launch. The YU7, priced at the equivalent of $35,000 in China, is a direct competitor to Tesla's best-selling Model Y, which starts at $36,760. Xiaomi CEO Lei Jun didn't hold back during YU7's launch on Thursday, saying his company would "not accept defeat" and was officially taking up Tesla's long-standing challenge to compare products head-to-head. The SUV's price edge, paired with better specs and sky-high local enthusiasm, could spell trouble for Tesla's operations. "The new Xiaomi is probably Tesla's largest threat so far, not only in China but globally. It's very competitive and appealing," Felipe Muñoz, global analyst at JATO Dynamics, told Business Insider. That threat goes beyond pricing and performance, according to Bill Russo, CEO of Shanghai-based consultancy Automobility. "They're not just an EV company," he told Bloomberg TV. "They're creating a fully integrated digital ecosystem, value proposition, which, in China, the world's biggest digital economy, resonates very, very well." Russo said Xiaomi is applying a "smartphone mindset" to vehicles — treating cars as digital terminals within a broader network of connected devices. With more than 600 million Xiaomi-branded smart devices in use globally, that ecosystem advantage could drive deeper customer loyalty than traditional automakers can muster. "They recognize this opportunity, they entered it, and in one year with one model, they're outselling Tesla in China," Russo said. "So I think you're going to see a pretty strong, positive momentum for this company going forward." Xiaomi's first car, the SU7, went on sale in China last year. Ford's CEO has called it "fantastic," and Business Insider's reviewer concluded that the EV "simply shouldn't drive this well given it's from a company that has not produced vehicles before." The YU7's launch comes at a difficult time for Tesla. According to data from Shanghai-based consultancy ThinkerCar, Tesla's battery electric vehicle sales in China dropped 18% year-over-year between January and May 2025. In contrast, rival BYD surged, selling 894,000 EVs globally over the same period, compared to Tesla's 603,000, overtaking it by a margin of 291,000 vehicles. BYD also overtook Tesla in global revenue last year, bringing in $107 billion versus $97.7 billion for Tesla. In April, BYD surpassed Tesla's sales in Europe for the first time, selling 7,230 battery-electric vehicles versus 7,165 for Tesla, according to JATO Dynamics data. Muñoz said a key factor is Tesla's aging lineup, particularly the Model Y. "It's about time to get an all-new generation," he said. "However, based on the strategy implemented with other models, it doesn't seem that an all-new Model Y is coming anytime soon." He said that might not be a problem in the US or Europe, where Tesla still leads on specs and battery performance, but it is in China. "The rivals are catching up fast and the price war is very aggressive." The growing pressure also seems to be straining operations. On Thursday, multiple outlets reported that Omead Afshar, Tesla's VP of manufacturing and a longtime Musk ally, had left the company. His departure follows that of Milan Kovac, head of the Optimus humanoid robot project, earlier this month. "The dismissal of Afshar is part of the game and Tesla's response to the increasing challenges in China, considering that it can't react fast from a product point of view," Muñoz said. "The Model Y is still one of China's top sellers, but it is not alone anymore." Meanwhile, Xiaomi is riding a wave of momentum. Its stock is up 72% this year, driven by EV success, smartphone dominance, and expansion into home appliances. Still, Muñoz cautioned against writing off Tesla just yet. "There's room for more models because the demand is still responding to the increasing offer. The YU7 is one of them, but it won't mean the defeat of Tesla," he said. "It will complicate life, but Tesla has already built a reputation of excellent EVs and is a pioneer in the EV industry." Not everyone is convinced Tesla can keep its edge. Russo noted that while Tesla led on software innovation, it lacks the localized integration that increasingly matters in China. "Tesla, as a software pioneer, you get consideration," he said. "But quite frankly, they don't have the digital ecosystem localized in the way the Chinese consumer wants them." Read the original article on Business Insider
Yahoo
8 hours ago
- Automotive
- Yahoo
China's Xiaomi launches YU7 battery-powered SUV
China's Xiaomi Corporation launched its eagerly anticipated YU7, its first battery-powered SUV model, a major milestone in the development of the consumer electronics giant's automotive business. According to local reports, the automaker secured more than 200,000 confirmed orders for the new model within an hour of its launch, despite the fierce competition in the country's battery electric vehicle (BEV) market. The YU7 is positioned as a high-performance, high-spec luxury SUV, competing head-on with the Tesla Model Y, currently the best-selling battery-powered SUV model in China. It is available in three main variants: YU7 Standard ultra-long-range RWD, priced at CNY 253,500 (US$ 35,500) YU7 Pro ultra-long-range AWD version, priced at CNY 279,900 (US$ 39,000) YU7 Max, ultra-long-range high-performance AWD version, priced at CNY 329,900 (US$ 46,000) The YU7 features the all-new Xiaomi HyperVision Panoramic Display as standard, which the company says employs a sophisticated triple Mini LED screen array utilizing "Panoramic Curved Projection Technology" to project comprehensive information onto the lower windshield area seamlessly — a visual setup that is between 2 and 3 times more expensive than a standard head-up display (HUD) system. Drivers benefit from optimally positioned speed and navigation projections within their natural field of vision. When turning, blind-spot images are displayed near the side mirrors. The YU7 range is powered by an upgraded Xiaomi HyperEngine V6s Plus electric drive system, with maximum revs of 22,000 rpm, peak torque of 528 Nm, and peak power of 288 kW. The YU7 Max variant has a maximum power output of 690 PS, a maximum speed of 253 km/h, and accelerates from 0–100 km/h in just 3.2 seconds. The Standard RWD model offers a range of 835 km of urban commuting on a single charge, or 1,000 km of long distance travel. It comes with a choice of lithium iron phosphate (LFP) and ternary lithium batteries. The YU7 range features advanced assisted driving hardware, including the new generation NVIDIA DRIVE AGX Thor™ chip with 700 TOPS computing power, LiDAR, 4D millimeter-wave radar, 11 high-definition cameras, and 12 ultrasonic radars. Among these are seven ultra-clear anti-glare cameras equipped with ALD coating technology, effectively reducing glare and backlight interference. "China's Xiaomi launches YU7 battery-powered SUV" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
