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Chinese Phonemaker Xiaomi Stuns Market with 200,000 EV Orders in 3 Minutes

Xiaomi, best known for its smartphones, made waves in China’s electric vehicle (EV) market after announcing 200,000 pre-orders in just three minutes for its new YU7 SUV. The announcement sent its shares to an all-time high, signaling fierce competition ahead for major players like Tesla and BYD.

Stock Surge Following EV Launch

On Friday, Xiaomi’s Hong Kong-listed shares soared by 8% at market open to a record HK$61.45 (US$7.83), before closing up 3.6%. The rally followed Thursday’s launch of YU7 pre-orders, marking the company’s aggressive push into the EV sector.

Xiaomi shares surge after new SUV gets 289,000 orders in an hour | The Star

YU7: Taking on Tesla

Priced at Rmb253,500 (approx. $35,370), the YU7 is directly positioned against Tesla’s Model Y. The launch comes at a time when EV and hybrid sales in China are outpacing those of internal combustion engines, but fierce price wars and rapid tech development are straining automakers’ margins.

Xiaomi aims for YU7 to outsell Tesla Model Y | Electrek

Implications for Competitors

According to Citi analyst Jeff Chung, Tesla may be forced to respond by slashing prices, waiving fees for its full self-driving platform, and extending financing offers. Tesla currently holds a 5% share in China’s NEV market, behind BYD (29%) and Xiaomi’s 3.5%.

Biểu đồ đường cho thấy cổ phiếu xe điện Trung Quốc đã hoạt động tốt hơn ở Hồng Kông trong năm nay

Consumer Frenzy & Future Expectations

Xiaomi later updated that it had received over 289,000 pre-orders for the YU7 within the first hour. Chung projected monthly YU7 sales to hit 60,000–80,000. The overwhelming demand has eased pressure on Xiaomi’s founder Lei Jun, who previously faced scrutiny after a fatal crash involving the SU7 sedan.

Rapid Growth of NEV Market

Production of new energy vehicles (NEVs), including EVs and hybrids, rose 46% in the first four months of 2025, while internal combustion vehicle output fell 6%, according to data from Automobility. Foreign automakers’ share across EVs and traditional cars has dropped to 31%, with Chinese brands surging.

Rapid growth of New Energy Vehicles market drove VW to the Cloud | DigiconAsia

Xiaomi’s Market Performance

Xiaomi’s stock has climbed more than 70% in 2025, ranking it among the top performers on the Hong Kong stock exchange. In contrast, BYD shares slipped 1.2% on Friday but remain up over 40% year to date. The broader Hang Seng index has gained 23% so far this year.

Xiaomi ranks 3rd again in global market performance - XiaomiTime

Conclusion

Xiaomi’s explosive EV launch reaffirms its rising influence beyond smartphones. With strong consumer demand and mounting competitive pressure, the YU7 may reshape the landscape of China’s already volatile electric vehicle market.

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