Chinese tech giant Xiaomi stunned the electric vehicle (EV) market on Thursday night after it received an overwhelming response to the launch of its new electric SUV, the YU7, clocking 289,000 pre-orders within the first hour of sales. The flood of demand sent the company’s Hong Kong-listed shares soaring to a record high, reinforcing Xiaomi’s rapid rise in China’s competitive EV sector.According to news agency AFP, Xiaomi founder and CEO Lei Jun expressed astonishment at the unprecedented customer interest. “My goodness, in just two minutes, we received 196,000 paid pre-orders and 128,000 lock-in orders,” Lei said in a video following the launch. “We may be witnessing a miracle in China’s automotive industry.”The YU7, a five-seater electric SUV, starts at 253,500 yuan (around $35,360), pricing it nearly 4% below Tesla’s Model Y in China. The sharp price point and Xiaomi’s aggressive feature set appear to have fueled the rapid pre-sale demand. The vehicle boasts a range of up to 760 kilometres on a single charge, significantly above the 719 kilometres advertised for Tesla’s extended-range Model Y.Reuters reported that the YU7’s early orders surpassed market expectations of 100,000 and were more than triple the initial response to Xiaomi’s debut sedan, the SU7, launched last year. Analysts at Jefferies noted that while the YU7 is “slightly below” Tesla’s Model Y in price, it “offers much better specs and performance.” Citi analysts, as cited by Reuters, warned that Tesla may need to offer more incentives or even cut prices to keep pace with Xiaomi’s momentum.The YU7 also includes high-end tech features like Apple CarPlay, Apple Music support, and AI-enhanced driver-assist capabilities powered by Nvidia’s Thor chip. Despite being behind Tesla in full self-driving technology, Lei Jun claimed the YU7 beats the Model Y “on a range of metrics.”As per CNBC, the launch was originally planned for July but was moved up, possibly to capitalise on strong market momentum and an intensifying EV price war in China. The vehicle will begin deliveries within one to five weeks.Beyond cars, Xiaomi also launched AI-enabled smart glasses that can take photos, scan QR codes for payments, and perform real-time translations, positioning the brand against Meta’s Ray-Ban smart offerings. Priced at 1,999 yuan ($279), the glasses are currently available only in China.The launch comes at a critical time for China’s economy. Premier Li Qiang, speaking at the World Economic Forum in Tianjin this week, highlighted EVs as a cornerstone of Beijing’s push to become a “major consumption powerhouse.” The Xiaomi launch aligns with that strategy, helping drive demand for high-value, tech-forward products.Following the overwhelming reception, Xiaomi’s stock jumped 8% in early trade before paring gains to end 3% higher. According to Reuters, its market capitalisation has now surpassed $200 billion, making it the best-performing large-cap stock in the Asia-Pacific region this year.
