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Tesla Model Y Faces Major China Challenge
- Xiaomi unveiled the YU7 electric SUV in Beijing on May 22, 2025, positioning it as a direct competitor to Tesla's Model Y in China.
- The launch follows strong local competition and sliding Tesla sales in China, with previous Xiaomi EV success and regulatory issues adding pressure.
- The YU7 offers three trims with up to 681 horsepower, a maximum range of 518 miles, a 0-62 mph sprint in about 3.2 seconds, and advanced features like a full-width HyperVision panoramic display.
- Xiaomi CEO Lei Jun emphasized that the YU7 outperforms the Model Y in key performance areas and stated that driving range should be the primary consideration for buyers when selecting an electric vehicle.
- The YU7's debut and expected strong sales in China may intensify challenges for Tesla’s Model Y, potentially eroding Tesla's market share in the region.
53 Articles
53 Articles
The Tesla Model Y was the best-selling car in the world last year. The Toyota Corolla came in second and the Toyota RAV4 in third. Consumers are far from tired of Toyota's compact SUV, as the Japanese car is now being prepared for its sixth generation.
Tesla Model Y Faces Major China Challenge
The Model Y is Tesla Inc.’s (NASDAQ: TSLA) best-selling vehicle. Its U.S. base price of $44,990 makes it affordable compared to many other electric vehicles (EVs). The latest version is not available in the United States yet. However, it should win Tesla customers elsewhere, both those who own the Model Y now and those who might buy one. China’s Xiaomi, a large consumer products company, has introduced a direct competitor. Its new YU7 may even b…
While Apple failed in its car dream, two tech companies in China are entering the market. Huawei and Xiaomi are setting new standards in their technical sophistication and synergy. Western manufacturers can still react – but time is pressing.
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