A man in a dark suit in front of a Tesla building with parked cars.

Goodbye Tesla: the car brand that wants to dominate the market in the United States

A new competitor in the electric car market surprises the sector with its latest model

Xiaomi has surprised the world with its entry into the automotive market, breaking records with the launch of its electric SUV, the YU7. In just three minutes after pre-sales opened, the Chinese brand managed to sell 200,000 units; one hour later, that figure had already risen to 289,000. This shows the enormous enthusiasm for this new model. With this success, Xiaomi is positioning itself as a real threat to industry giants like Tesla.

This is not an isolated achievement. Xiaomi has shown its ability to surpass Tesla in sales, something that happened with its SU7 sedan, when it managed to outsell Tesla's Model 3 in China. Now, with the YU7, the company has its sights set on taking the throne from the Tesla Model Y, the best-selling electric SUV in China. With a model that's competitive in price, technology, and range, Xiaomi is not just competing; it's ushering in a new era for the automotive industry.

Blue Xiaomi YU7 electric car parked outdoors at sunset
Xiaomi YU7 takes the Chinese market by storm | Xiaomi

The Xiaomi YU7 phenomenon: A direct threat to Tesla

The pre-sale of the Xiaomi YU7 has exceeded expectations. In just three minutes after reservations opened, the brand had already secured 200,000 units. This phenomenon shows the strong support of Chinese consumers for local products. This electric SUV not only promises to be an alternative; it aims to be a direct competitor to the market leader, the Tesla Model Y.

Xiaomi, with its powerful sales and marketing network, has achieved the unthinkable. The YU7 is a model designed to compete with the Tesla Model Y, the best-selling electric SUV in China. In addition, the YU7 surpasses its predecessor, the SU7, which reached 88,898 orders in 24 hours; Xiaomi has doubled those figures in record time.

Why can Xiaomi win the battle?

With a competitive price and improvements in technology, range, and charging speed, the YU7 is designed to dethrone the Model Y. The growing preference of consumers for domestic brands in China also works in Xiaomi's favor. In a context of trade tensions with the United States, Xiaomi has found the perfect moment to launch itself into direct competition with Tesla.

Facade of a car dealership with two electric cars parked in front.
Xiaomi is a strong competitor for Tesla | Tesla

The Chinese market is increasingly receptive to local alternatives. Xiaomi has already shown its ability to surpass Tesla in the electric sedan market. In December 2024, Xiaomi's SU7 outsold the Tesla Model 3 in the country. Now, with the YU7, the brand aims to climb the electric car sales ranking, even surpassing Tesla in the near future.

Xiaomi accelerates while Tesla slows down

Tesla remains a dominant player, but its leadership is being threatened by Xiaomi's speed. In March, the Model Y was the best-selling electric car in China, with 43,370 units (43.370); however, Xiaomi's SU7 sold more than 27,000 units (27.000) in that same month. Now, with the YU7, which enters the same category as the Model Y, the competition between both brands is intensifying.

Xiaomi is playing in the big leagues. The speed with which it has achieved these strong numbers shows that it not only has the support of Chinese consumers, but also a very well-defined strategy to position itself as a leader in the electric vehicle market. The YU7 is just the beginning.