Shares of Xiaomi Corporation surged over 5% to a record high in Hong Kong trading on Friday, buoyed by robust demand for its newly launched electric vehicle, the YU7.
The company reported over 200,000 orders within three minutes of the SUV’s debut, positioning it competitively against Tesla by undercutting the price of the Model Y by 10,000 yuan, with the YU7 starting at 253,500 yuan ($35,322).
Market analysts at Citi previously projected the price range for the YU7 between 250,000 and 320,000 yuan ($34,800 to $44,590) and anticipated monthly sales of around 30,000 units, which could see annual deliveries reach up to 360,000 in the future.
CEO Lei Jun highlighted that the YU7 outperforms Tesla’s Model Y in several aspects except for driver assistance features, though the SUV boasts advanced driver-assist technology powered by Nvidia’s Thor chip.
Deliveries are set to begin within five weeks, marking a swift market entry just months after the vehicle was first revealed in late May. Offering a driving range of at least 760 kilometers per charge, the YU7 beats the extended-range Tesla Model Y, appealing to range-conscious consumers.
Xiaomi’s launch event also highlighted AI enhancements in the YU7, such as gesture-based controls and integrated support for Apple CarPlay and Apple Music.
In addition to its new SUV, Xiaomi unveiled AI-connected smart glasses, rivaling Meta’s Ray-Bans with features like adaptive lens tinting, mobile payment via QR code, and real-time translation. Priced at 1,999 yuan ($279), the glasses are currently available exclusively in China, with no plans for an international release.
