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American Focus > Blog > Economy > China’s Xiaomi undercuts Tesla with yet another cheaper car
Economy

China’s Xiaomi undercuts Tesla with yet another cheaper car

Last updated: June 26, 2025 8:25 am
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China’s Xiaomi undercuts Tesla with yet another cheaper car
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Xiaomi, the Chinese smartphone giant, is making waves in the electric car market with the launch of its new luxury YU7 SUV. Priced at 253,500 yuan ($35,322), the YU7 is set to compete directly with Tesla’s Model Y, which starts at 263,500 yuan in China. This move comes after the success of Xiaomi’s SU7 sedan, which was priced below Tesla’s Model 3.

CEO Lei Jun highlighted that the YU7 surpasses the Model Y in several key areas, although it falls short in driver assist technology. The YU7 comes equipped with advanced driver-assist software powered by Nvidia’s Thor chip. Pre-sales for the YU7 began on Thursday, with deliveries expected within one to five weeks. Impressively, Xiaomi received over 200,000 orders just three minutes after the pre-sales launch.

One of the standout features of the YU7 is its impressive driving range of at least 760 kilometers on a single charge, surpassing Tesla’s Model Y by 41 kilometers. This extended range addresses a common concern among consumers regarding the frequency of battery charging. Additionally, Xiaomi showcased various AI car features during the launch event, such as gesture-controlled music playback and an app that helps locate the parked car. The YU7 also supports Apple Car Play and Apple Music, adding to its appeal for tech-savvy consumers.

In addition to the electric SUV, Xiaomi unveiled its highly-anticipated AI-connected glasses, which offer similar features to Meta’s smart glasses. Priced at 1,999 yuan ($279), the glasses can change lens tint, scan QR codes for payments, take photos and videos, and utilize interactive AI for tasks like flower identification and text translation. While Xiaomi has no plans to sell the glasses overseas, they present a compelling alternative to Meta’s offering, which is not officially available in China.

See also  China's tech talent making big strides in AI, creating apps for world

Overall, Xiaomi’s foray into the electric car market and innovative product launches signal the company’s commitment to expanding its technological offerings. With competitive pricing, advanced features, and a focus on AI integration, Xiaomi is poised to challenge established players like Tesla and Meta in the tech industry.

TAGGED:carCheaperChinasTeslaundercutsXiaomi
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