• Xiaomi's YU7 SUV secures 289,000 pre-orders within the first hour after launch.
• The vehicle is priced at 253,500 yuan ($35,000), undercutting Tesla's Model Y.
• Shares of Xiaomi rose 8% to a record high following the overwhelming demand.

Chinese tech giant Xiaomi has made a tremendous impact on the electric vehicle market with the launch of its YU7 SUV, garnering 289,000 pre-orders within just one hour. Founder and CEO Lei Jun expressed his astonishment at the pre-order figures, stating, "My goodness, in just two minutes, we received 196,000 paid pre-orders and 128,000 lock-in orders," highlighting the unprecedented interest in the vehicle. The YU7's pricing starts at 253,500 yuan (approximately $35,360), placing it nearly 4% lower than Tesla's Model Y in China, thus attracting considerable consumer attention, according to Indiatimes, Channel News Asia, and The Jakarta Post.

The impressive demand for the YU7 SUV has sent Xiaomi's shares soaring by 8%, reaching a record high in Hong Kong. Analysts are predicting that Tesla could lose significant market share in the face of increasing competition from domestic EV manufacturers like Xiaomi, which has already eclipsed Tesla’s Model 3 in sales since December with its previous model, the SU7. Industry experts believe that Xiaomi's competitive pricing and superior specs will compel Tesla to reassess its strategy and possibly lower prices or enhance incentives, as suggested by analysts at Jefferies and Citi, according to Indiatimes, Channel News Asia, and The Jakarta Post.

Premier Li Qiang recently outlined China's ambitions to enhance consumption, spotlighting the electric vehicle sector as a critical component of this strategy during the World Economic Forum in Tianjin. Xiaomi's successful launch aligns with these goals, promoting high-value technological advancements in the automotive market. Following the broader industry push for domestic consumption, the YU7 not only represents Xiaomi's second vehicle but also its stance against global competitors like Tesla, positioning itself firmly in the rapidly evolving electric vehicle landscape, according to Indiatimes, Channel News Asia, and The Jakarta Post.