Xiaomi Launches Tesla rival Model with Stunning New Features

Xiaomi has launched its new YU7 sports utility vehicle, with show cars hitting 13 showrooms in Beijing on Thursday, May 29, 2025. Seen as a direct competitor to Tesla’s Model Y, the company plans to expand YU7’s showcases to 92 cities across China by June and will begin accepting orders for the YU7 in July.

Xiaomi aims to replicate the success of its SU7 sedan, which has consistently outsold Tesla’s Model 3 in China since its debut last year. Analysts believe the YU7 could pose a significant threat to the Tesla Model Y.

It is a five-seat mid-to-large-size SUV, measuring 4,999 mm in length, 1,996 mm in width, and 1,600 mm in height, with a 3,000 mm wheelbase. The YU7 is powered by Xiaomi’s V6s Plus super e-motor, making 0-100 km/h in 3.32 seconds. Making 670 horsepower with a peak power of 508 kW it comes with a 101.7 kWh NMC battery, giving up to 760 km CLTC range.

It includes a “Hypervision” panoramic display, a 6.68-inch rear control screen, Nvidia Thor chip-powered ADAS, and LiDAR as standard. It also features an 800V platform, capable of gaining 620 km of range in 15 minutes of charging.

Official pricing will be announced in July, but HSBC Qianhai estimates it will be between 230,000 yuan and 330,000 yuan ($31,989-$45,898). The Tesla Model Y is priced from 263,500 yuan in China. HSBC Qianhai forecasts Xiaomi could ship 100,000 YU7 units this year and 249,000 units in 2026.

Despite strong initial demand, Xiaomi has faced some challenges, including a fatal highway crash involving an SU7 in driving-assistance mode. When customers filed complaints of false advertising, Xiaomi apologized for it and promised to eliminate the issue.