Xiaomi Shares Jump as New SUV Receives 289,000 Orders Within an Hour

Xiaomi has officially launched its second electric vehicle (EV), the YU7 SUV, priced at 253,500 yuan (approx. $35,360). Designed to directly challenge Tesla’s Model Y, the YU7 made its debut during a high-profile launch event in Beijing. Xiaomi’s founder Lei Jun openly compared the YU7 to Tesla’s offering, signaling the company’s intent to dominate China’s premium electric SUV market.

Pre-Orders Cross 289,000 in Just 1 Hour

Consumer interest exceeded expectations, with 289,000 pre-orders recorded within the first hour of availability. The company began accepting pre-orders with a 5,000 yuan deposit on Thursday. According to Xiaomi, over 200,000 bookings were confirmed within just three minutes of launch—an early indicator of strong demand and brand loyalty.

In an unexpected move, Lei announced that buyers who had placed orders for Xiaomi’s first EV, the SU7 sedan, could switch to the YU7 within three days if their vehicle had not yet been delivered.

Xiaomi Stock Hits Record High on EV Optimism

Following the SUV’s launch and overwhelming response, Xiaomi’s shares jumped 8%, hitting an all-time high. The surge in investor confidence highlights optimism around Xiaomi’s EV strategy and its bold challenge to established players like Tesla, BYD, and Nio in the Chinese EV market.

According to analysts at Goldman Sachs, the demand for the YU7 has significantly outpaced expectations. They noted Xiaomi is likely to solidify its position in the premium EV segment and raised their stock price target by 6% to HK$69.

Specs, Features, and Price Range of the YU7

The YU7 SUV comes in multiple trims, with the top-end model priced at 329,900 yuan. Key specifications include:

• Range: Up to 760 km (470 miles) on a single charge

• Acceleration: 0 to 100 km/h in 3.23 seconds

• Charging: 800-volt platform for ultra-fast charging

• Safety & Tech: Equipped with lidar sensors for advanced driver assistance

Aesthetically, the YU7 is available in nine colors and includes luxury features like massage seats, smart drawers, and large touchscreens, catering to evolving consumer expectations in China’s competitive auto market.

SUVs Gain Ground Over Sedans in China

According to Bloomberg Intelligence, the launch of the YU7 aligns with China’s growing preference for SUVs over sedans. Video testimonials, product demos, and strong marketing have positioned the YU7 as a viable alternative to both the Tesla Model Y and BYD’s Tang L SUV.

Projections suggest that the YU7 could contribute 41% of Xiaomi’s EV sales in the second half of 2025, potentially helping the brand beat its EV targets by 13%.

Concerns Amid Regulatory Scrutiny and Industry Pressure

While the YU7 launch marks a high point for Xiaomi, the company is also facing challenges. A fatal accident involving an SU7 sedan has brought Xiaomi under regulatory scrutiny. Moreover, Chinese authorities are pressuring automakers to self-regulate pricing, avoid inflated sales using “zero-mileage” used cars, and improve supplier payment timelines to maintain industry health.

Still, Lei Jun remains optimistic, forecasting that Xiaomi’s EV division could achieve profitability in the second half of 2025—making it one of the fastest-growing EV brands in the world.

Xiaomi Expands Beyond EVs with New Product Launches

In addition to the YU7, Xiaomi also introduced several other tech products during Thursday’s event:

• MIX Flip 2: A new foldable smartphone

• 1,999 yuan AI smart glasses: Capable of video recording and AI-powered visual assistance

• New Xiaomi tablet: Powered by the in-house Xring O1 chip

These launches reinforce Xiaomi’s goal of becoming a global consumer electronics leader, spanning smartphones, wearables, smart home devices, and now, electric vehicles.