Xiaomi Launches YU7 Electric SUV to Undercut Tesla’s Model Y

Xiaomi Commits $6.9 Billion to In-House Chips, Unveils Next-Gen Xring O1 SoC

preCharge News BUSINESS — Xiaomi officially launched its new YU7 electric SUV, positioning it directly against Tesla’s Model Y in China’s rapidly evolving electric vehicle (EV) market.

Priced Below Tesla’s Model Y

Xiaomi CEO Lei Jun announced Thursday that the YU7 will start at 253,500 yuan ($35,322) — a full 10,000 yuan less than Tesla’s Model Y, which starts at 263,500 yuan in China.

Xiaomi Launches YU7 Electric SUV to Undercut Tesla’s Model Y

Ahead of the launch, a Citi research report projected the SUV would be priced between 250,000 and 320,000 yuan ($34,800 to $44,590), with expected monthly sales of 30,000 units and annual sales reaching up to 360,000 vehicles.

Xiaomi previously undercut Tesla’s Model 3 with its SU7 electric sedan released last year.

Performance and Features

Claimed Superiority Over Model Y

At the launch, Lei claimed the YU7 surpasses the Tesla Model Y in several performance metrics, though he conceded it falls short in driver-assist capabilities.

The YU7’s advanced driver-assist software is powered by Nvidia’s Thor chip, with the most enhanced features included in higher trims.

Pre-sales began Thursday at 10 p.m.
Deliveries are expected within one to five weeks.
Orders surged to over 200,000 within three minutes of launch.

Extended Driving Range

The YU7 boasts a 760-kilometer (472-mile) range on a single charge, outperforming Tesla’s extended-range Model Y, which offers 719 kilometers.

Driving range continues to be a critical feature for consumers concerned about battery charging frequency.

Smart and AI Features

Despite a lower emphasis on AI branding compared to other tech firms, Xiaomi’s launch showcased multiple AI-powered driving features:

Gesture control to change music tracks
App-based smart assistant to locate the vehicle
Support for Apple CarPlay and Apple Music

Xiaomi Expands Into Wearable AI

New AI-Connected Smart Glasses Revealed

Alongside the YU7, Xiaomi unveiled its AI-powered smart glasses, challenging Meta’s Ray-Ban smart glasses.

Features include:
- Tint-adjusting lenses
- QR code scanning for mobile payments
- AI image recognition to identify objects (e.g., flowers)
- Text translation
- Photo and video capture

The glasses are priced at 1,999 yuan ($279). A Xiaomi spokesperson confirmed there are no current plans for international sales. Meta’s similar product is not officially sold in China.