KATHMANDU: Xiaomi Corporation’s shares soared to an all-time high on the Hong Kong Stock Exchange following a strong market response to its newly launched YU7 electric SUV according to Chinese media.
The surge in investor confidence has also propelled CEO and founder Lei Jun to become China’s wealthiest individual.
The tech giant opened preorders for its second electric vehicle, the YU7, on Thursday and received over 200,000 orders within minutes of launch. The overwhelming demand has been partially attributed to the vehicle’s competitive pricing, which starts at USD 35,300 approximately USD 1,400 cheaper than Tesla’s Model Y in the Chinese market.
Xiaomi’s entry into the EV segment began with the SU7 sedan, which was launched in 2024 and sold nearly 260,000 units as of May 2025. While SU7 demand had slowed recently due to safety controversies and questions over component performance claims, the YU7 appears to have restored momentum to the company’s automotive ambitions.
The YU7 is positioned as a luxury electric SUV built on Xiaomi’s Modena EV platform. However, despite platform similarities, around 90% of its components are newly developed, making its production process significantly different from that of the SU7.
Currently, both models are being produced at Xiaomi’s sole manufacturing facility in Beijing’s Yizhuang district.
With the EV sector becoming increasingly competitive in China, Xiaomi is strategically pricing its vehicles to gain market share. The pricing of the YU7 undercuts not only Tesla but also poses a threat to other domestic players. Following the launch, BYD shares dipped slightly, signaling growing pressure in the segment.
As Xiaomi continues to diversify its portfolio beyond smartphones and consumer electronics, the EV division is expected to become a major pillar of growth. However, analysts warn that supply chain constraints and production scalability will remain key hurdles in the company’s path forward.
