Xiaomi Corp. (OTC:XIACY) shares are trading higher Thursday after the company officially launched its new electric SUV, the YU7, undercutting Tesla Inc (NASDAQ:TSLA) on price and reporting a flood of pre-orders within minutes.
What To Know: CEO Lei Jun announced the YU7 will start at 253,500 yuan ($35,322), roughly 10,000 yuan less than Tesla's Model Y, which currently starts at 263,500 yuan in China, according to CNBC.
The announcement marks a direct challenge to Tesla in the Chinese EV market, as the price war between domestic and foreign automakers continues to escalate.
Xiaomi revealed it received over 200,000 pre-orders within just three minutes of opening pre-sales, signaling strong early demand. Deliveries are anticipated to begin in one to five weeks. The YU7, which comes equipped with Nvidia's Thor chip for advanced driver-assist software, reportedly offers a driving range of 760 kilometers (472 miles), beating Tesla's extended-range Model Y which advertises 719 kilometers.
Xiaomi's new SUV is its second EV launch following the SU7 sedan, which was positioned as a lower-cost alternative to Tesla's Model 3. While Xiaomi admits it still lags behind Tesla in some areas like driver-assist, the company emphasized strengths in range and smart features, including gesture-based AI controls, Apple CarPlay support and integrated Apple Music.
In addition to the vehicle launch, Xiaomi reportedly unveiled a new pair of AI-powered smart glasses with features similar to Meta's Ray-Ban offering. The glasses can scan QR codes for payments, adjust tint levels and identify objects using an interactive AI interface. The glasses will launch in China for 1,999 yuan or around $279, with no current plans for overseas sales.
Price Action: Xiaomi shares were up about 10% at $39.54 at the time of writing Thursday, according to Benzinga Pro.
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