Lei Jun launches electric SUV challenging Tesla's Model Y

In China, Xiaomi's billionaire co-founder and CEO, Lei Jun, launched the YU7 electric SUV on June 26, 2025, in Beijing. This new model is positioned as a direct competitor to Tesla's Model Y, which has been the best-selling SUV in China for 2024. The standard version of the YU7 offers an impressive range of 835 kilometers on a single charge, undercutting the starting price of the Model Y at 253,500 yuan ($35,366) compared to the Model Y’s starting price of 263,500 yuan. Following its launch, pre-orders for the YU7 surged to 289,000 units in the first hour, marking a significant achievement in the country’s auto sector. As of the launch, Xiaomi’s shares experienced a notable rise, initially boosting by 8% before settling at a 3.3% increase. Lei Jun's net worth is estimated at $46.5 billion, placing him as China’s fourth richest person, just behind Ma Huateng of Tencent. The launch event emphasized the increasing competition in the electric vehicle (EV) market, with both the YU7 and Xiaomi's previous model, the SU7 electric sedan, boosting projected delivery numbers significantly. Experts anticipate that these new models will lead to over 400,000 deliveries in 2025. The YU7 features advanced versions including a Pro variant starting at 279,900 yuan and a Max model priced at 329,900 yuan. Lei Jun expressed confidence in facing stiff competition, stating that Xiaomi would confront its strongest rivals head-on in the EV market. In light of concerns over exaggerated marketing for self-driving technologies, Chinese regulators have clamped down on terminology like “smart driving” and “autonomous driving” used by automakers. With deliveries expected to begin in July 2025, Xiaomi is set to exceed its initial target of 350,000 cars for the year. The benchmark set by the YU7 and its pre-launch success serves as a vital indicator of both consumer demand for electric SUVs and the competitive landscape against established players like Tesla, ultimately signaling a transformative period in China's automotive landscape.