Xiaomi deepened its push into electric vehicles with the 26 June debut of the YU7, its first sport-utility model and second car overall. The SUV is offered in three trims priced at CNY 253,500, CNY 279,900 and CNY 329,900 (US$35,300–46,000) and delivers up to 835 kilometres of range, undercutting Tesla’s Model Y by roughly 4 percent. Demand was instantaneous: the Beijing-based company logged 200,000 non-refundable orders within three minutes, 240,000 in 18 hours and 289,000 inside the first hour—one of the fastest order intakes recorded in China’s EV market. The frenzy eclipsed the launch of Xiaomi’s SU7 sedan last year and highlighted continued appetite for mid-priced electric crossovers. The order surge propelled Xiaomi’s Hong Kong-listed shares up as much as 10 percent to record levels and drew upbeat reviews from brokerages including Jefferies and Morgan Stanley, which called the YU7 a credible threat to Tesla’s best-selling Model Y. Soaring reservations have strained production at Xiaomi’s new plant in Beijing. Customers now face delivery times of 38 to 60 weeks, sparking more than 400 complaints and refund requests on consumer forums. Xiaomi said it is accelerating hiring for a second factory line and that Chief Executive Lei Jun will address concerns in a livestreamed briefing. The company began handing over the first batch of YU7s on 6 July in 58 cities, even as rivals step up pressure: Xpeng’s newly launched AI-equipped G7 starts at CNY 195,800, further crowding a segment already locked in a price war. Xiaomi is targeting 350,000 vehicle deliveries in 2025 as it races to scale output and meet the pent-up demand.