Xiaomi YU7 Launch and Record-Breaking Sales: A New Era in Electric SUV

On June 26, 2025, Xiaomi made automotive history with the launch of its first electric SUV, the YU7 (御7), shattering global sales records within minutes. The vehicle’s 3-minute pre-order volume exceeded 200,000 units, and within an hour, orders surged to 289,000, eclipsing even Tesla’s best-performing models in China. This unprecedented demand underscores Xiaomi’s rapid rise as a formidable player in the EV market, leveraging its strong brand ecosystem, aggressive pricing, and cutting-edge technology.  

The YU7 Launch Event: Key Highlights  

1. Product Specifications & Competitive Pricing  

The Xiaomi YU7 is positioned as a "luxury high-performance SUV", featuring:  

- 800V SiC ultra-fast charging (15-minute charge for 620 km range)  

- CLTC range of 835 km (standard version), surpassing Tesla Model Y’s 593 km  

- Tri-motor Max variant with 691 HP, accelerating from 0-100 km/h in 3.23 seconds  

- Laser radar, NVIDIA Thor AI chip (700 TOPS), and Xiaomi’s proprietary HyperOS integration  

Pricing was strategically set to undercut Tesla:  

- Standard RWD: ¥253,500 (~$35,000)  

- Pro AWD: ¥279,900 (~$38,500)  

- Max Performance AWD: ¥329,900 (~$45,500)  

This "flagship specs at mid-range pricing" approach earned the YU7 the nickname "the king of cost-performance".  

2. Market Positioning & Competitive Edge  

Xiaomi CEO Lei Jun directly compared the YU7 to the Tesla Model Y, highlighting:  

- Longer range (+242 km)  

- Faster charging (5.2C vs. Tesla’s 3C)  

- More premium interior features (including a panoramic 1.1-meter HUD display)  

The "full-stack high-end standard" strategy—where even the base model includes laser radar, 800V architecture, and adaptive suspension—disrupted the industry’s typical "pay-to-upgrade" model.  

Record-Breaking Sales Performance  

1. Unprecedented Demand  

- 3 minutes: 200,000 pre-orders (with 122,000 locked-in non-refundable deposits)  

- 1 hour: 289,000 orders, nearing Xiaomi’s annual production capacity of 300,000 units  

- First-day sales revenue: Approx. ¥100 billion (~$13.8 billion)  

By comparison:  

- Tesla Model Y (2025 refresh): Only 50,000 pre-orders on launch day  

- Xiaomi SU7 (2024 sedan): 88,900 orders in 24 hours—now dwarfed by the YU7’s explosive demand.  

2. Factors Driving the Sales Surge  

(a) Ecosystem Synergy & Brand Loyalty  

- Xiaomi’s 1.1 billion global MIUI users provided a massive conversion funnel.  

- Buyers received ¥66,000 (~$9,100) in launch perks, including free Nappa leather seats and lifetime ADAS services.  

(b) Aggressive Pricing & High-End Standardization  

- Unlike Tesla, which charges extra for FSD and premium interiors, Xiaomi made premium features standard, forcing rivals to reconsider their pricing models.  

(c) Strong Pre-Launch Hype  

- The YU7’s reservation volume was 3x higher than the SU7’s at the same stage, reflecting growing consumer trust in Xiaomi’s automotive ambitions.  

Industry Impact & Competitive Response   

1. Tesla’s Market Share Under Threat  

- Tesla’s Model Y sold ~126,600 units in China in the first five months of 2025, but the YU7’s single-day orders surpassed two years of Model Y sales.  

- Tesla’s stock dropped 3.79% post-launch, erasing ~$40 billion in market cap.  

2. Chinese EV Makers Adjust Strategies  

- NIO, Xpeng, and Li Auto reportedly accelerated their SUV launches to counter Xiaomi’s dominance.  

- Lantu Auto’s executive controversially dismissed Xiaomi as "a bubble tea brand", reflecting industry anxiety.  

Challenges Ahead: Can Xiaomi Sustain the Momentum?  

1. Production & Delivery Bottlenecks  

- Xiaomi’s current annual capacity is 300,000 vehicles, but with SU7 and YU7 sharing production lines, some buyers may wait until 2026 for delivery.  

- Scalpers exploited demand, reselling pre-order slots for ¥2,000-10,000 (~$275-$1,375).  

2. Data Authenticity Concerns  

- Rumors of "350,000 orders in 5 minutes" were debunked by Xiaomi’s PR head, clarifying the actual conversion rate was ~60% (122,000 locked orders).  

3. Long-Term Quality & Safety Assurance  

- Xiaomi emphasized 6.49 million km of extreme-condition testing (-41°C to 53°C) to reassure buyers after past SU7 safety concerns.   

Conclusion: A New Benchmark in EV Competition  

The YU7’s success validates Xiaomi’s "tech democratization + ecosystem integration" strategy. If Xiaomi can ramp up production and maintain quality, the YU7 could redefine the 25-35k EV SUV segment, much like the iPhone did for smartphones.  

Morgan Stanley predicts Xiaomi’s auto revenue could hit ¥1 trillion (~$138 billion) by 2030, with its stock potentially reaching HK$100. For now, the YU7’s record-breaking debut marks a pivotal moment—not just for Xiaomi, but for the global EV industry.