Published: 10:31pm, 26 Jun 2025 Updated: 11:04pm, 26 Jun 2025 Xiaomi, the Chinese smartphone maker and electric-car start-up, priced its YU7 sport-utility vehicle (SUV) at a 4 per cent discount to Tesla’s bestselling Model Y, a move that is expected to draw a wave of orders in a cutthroat market where even the strongest players struggle to break even. Advertisement The YU7, Xiaomi’s second production model, starts at 253,500 yuan (US$35,322), compared with 263,500 yuan for the Model Y’s basic edition, the Beijing-based company announced at a launch event on Thursday evening. “We have set an unreasonable goal of beating the Model Y,” Xiaomi CEO Lei Jun said on Weibo on Monday. “Based on the strength of our product, I am fully confident that we can achieve the goal.” The new SUV, featuring a preliminary self-driving system, a large multimedia screen and a high-performance battery, was seen as a game changer in mainland China’s premium electric-vehicle (EV) segment, where Tesla has seen its advantage erode. It has a driving range of 835km, while Tesla’s Shanghai-made Model Y can go as far as 593km on a single charge. Advertisement