Xiaomi’s shares in Hong Kong surged to a record high on Friday following a wave of strong preorders for its newly unveiled YU7 electric vehicle, which also undercut Tesla on price.
The stock jumped more than 5% to HK$61.10, outperforming the broader Hang Seng Index, which rose just 0.5%.
The Chinese tech giant opened preorders for its YU7 electric SUV on Thursday and reported over 200,000 orders within minutes of launch. CEO Lei Jun announced that the starting price for the YU7 will be 253,500 yuan (approximately $35,300), making it about 10,000 yuan cheaper than Tesla’s competing Model Y.
The YU7 marks Xiaomi’s second entry into the electric vehicle market, following the successful release of the SU7 in 2024, which had sold nearly 260,000 units by May 2025.
Xiaomi views electric vehicles as a key pillar of its long-term growth strategy, as it diversifies beyond its traditional product lines of smartphones and consumer electronics.
While SU7 sales had slowed in recent months due to controversy over safety concerns and questionable claims about certain performance components, the YU7’s attractive pricing and overwhelming early demand may signal renewed momentum for Xiaomi’s EV business.
Despite the positive launch, Xiaomi still faces intense competition in China’s crowded EV landscape. Major players like BYD have aggressively slashed prices to gain market share. BYD’s shares slipped slightly on Friday in response to Xiaomi’s strong debut.
