Xiaomi hints at launching Tesla-style SUV in the summer as part of major EV push

Xiaomi Corp. has unveiled its plans to introduce a new electric SUV, the YU7, around the summer of 2025. This move is part of Xiaomi’s ambitious strategy to compete with leading electric vehicle manufacturers like Tesla and BYD in the global EV market. The YU7, which was showcased by Xiaomi’s billionaire founder Lei Jun on Weibo, is a 5-meter-long, pure electric SUV. It is equipped with a nickel-cobalt-manganese battery made by Contemporary Amperex Technology Co. Ltd. and offers motor power options of either 220kW or 288kW, according to information from China’s Ministry of Industry and Information Technology.

This SUV represents a significant expansion of Xiaomi’s $10 billion electric vehicle venture, which is spearheaded by Lei Jun. The company is diversifying beyond its smartphone business, which is heavily influenced by global market trends, particularly the dominance of Apple. Xiaomi’s entry into the competitive EV market brings it into direct competition with established players like Tesla and BYD.

While detailed specifications and pricing for the YU7 remain unclear, its unveiling indicates a strategic move into the growing SUV market in China. The SUV segment has been gaining popularity, and Xiaomi’s new model could provide a boost to its stock if it lives up to market expectations. Analysts from Citigroup, including Kyna Wong, have speculated that the new model could help Xiaomi exceed its 2025 shipment targets, potentially strengthening its position in the EV market.