Xiaomi’s Leap into EVs: SU7 Model Aims to Outshine Tesla

Chinese smartphone brand Xiaomi has made a high-profile launch of its first electronic vehicle (EV), boasting tens of thousands of orders in less than an hour.

Xiaomi CEO Lei Jun revealed the firm will sell its standard SU7 model for 215,900 yuan ($30,381), with the upgraded Max edition costing 299,900 yuan ($42,202).

Xiaomi Expects to Beat Tesla in Price

Lei conceded the company would sell each car at a loss, at least initially. Still, Xiaomi’s divergence into the crowded EV market signals a trade war with Tesla and BYD, which are set to take notice given recent sluggish demand.

In China’s dominant EV market, Tesla has reacted by cutting the cost of its cars by thousands. BYD, the world’s top-selling EV maker, making similar moves.

“The goal of the Xiaomi SU7 is to be the best-looking, best-driving, and most intelligent sedan under 500,000 yuan ($69,328),” Lei wrote in a post on Chinese social media platform Weibo.

The SU7’s attractive pricing is likely to pique consumer interest. It beats the starting price of Tesla’s introductory Model in China, at 245,900 yuan ($34,603). The company has claimed the SU7 beats the Model 3 in most of its specifications, except in a couple of aspects that could take up to five years to match Elon Musk’s organization.

Xiaomi SU7: details

Xiaomi added that they hope to entice customers with the same operating systems in their cars as those in their phones, laptops, and other devices.

So many incredible colors, it's going to be a tough choice.?? #XiaomiSU7 pic.twitter.com/iuU3svyDdA

— Lei Jun (@leijun) March 28, 2024

Delivery of the SU7 is said to be on track by the end of April, with over 50,000 cars snapped up in just 27 minutes since the 10 p.m. launch in Beijing on March 28.

The long-awaited release of the SU7 has seen Xiaomi’s EV likened to Porsche’s Taycan and Panamera sports cars.

This is a venture into uncharted waters for Xiaomi in an industry without significant background. It is also a leap of faith and ambition for Lei personally.

“Three years ago, I announced that Xiaomi would enter the EV market. This is my final new venture – I am putting my reputation on the line to fight for a vision I deeply believed in,” he said on X.

Many have asked me if Xiaomi has the confidence to succeed in the highly competitive EV industry. My answer is "absolutely" – we've been diligently preparing for this new chapter. Unlike building smartphones from the ground up 14 years ago, customer expectations for EVs are… pic.twitter.com/QhnlO3JoUl

— Lei Jun (@leijun) March 29, 2024