Chinese technology company Xiaomi has officially launched its new electric sport utility vehicle, the YU7, priced at approximately $35,360. The YU7 is positioned as a direct competitor to Tesla's popular Model Y, undercutting Tesla by about 4% in price while offering enhanced specifications and features. Since its launch, Xiaomi has experienced overwhelming demand, securing around 200,000 pre-orders within the first three minutes, and nearly 300,000 non-refundable pre-orders within 18 hours, generating roughly $850 million in sales. This rapid uptake surpasses Tesla's Model Y sales in China over a comparable period and has contributed to an 8% rise in Xiaomi's share price to a record high. The YU7 is targeted at the mid-to-upper segment of China's electric vehicle market and is part of Xiaomi's broader push into the automotive sector, signaling a strategic shift from its smartphone origins. However, the high volume of orders has led to delivery delays, with some customers facing waits of up to a year or more, prompting complaints and refund requests. Meanwhile, competitor Xpeng Motors has introduced its G7 SUV, equipped with an in-house AI chip and priced from approximately $27,300, also aiming to challenge Tesla and Xiaomi in the electric SUV market.