Xiaomi’s CEO: Our SUV Wasn’t Cheaper Than Tesla, So We Made One That Is
May 23, 2026 – 8:26 am
Image by: Poprace
TL;DR
Xiaomi’s new $34,300 YU7 undercuts the Model Y by $4,350 with 50km more range. Sales had dropped below 10,000 units a month.
Most CEOs wouldn’t admit their product wasn’t competitively priced against a rival. Lei Jun did exactly that and then launched a model that fixes it.
At Xiaomi’s “Human x Car x Home” launch event on May 21st, the founder and CEO unveiled:
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YU7 True Standard Edition: A new entry-level variant priced at approximately $34,300 (233,500 yuan). Cheaper than the cheapest Tesla Model Y by $4,350.
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YU7 Long Range Edition: Previously starting at $1,450 below Tesla, now renamed and repositioned.
The new Standard Edition boasts 643 km (approximately 399 miles) on the CLTC cycle, compared to 593 km (368 miles) for the equivalent Model Y – more range for less money.
The technical changes focus on cost reduction without visible compromise:
- Smaller 73 kWh lithium iron phosphate battery from CATL.
- Single rear motor producing 235 kW.
- Kerb weight reduced to 2,200 kg.
Xiaomi’s EV success:
- Over 600,000 EVs shipped in under two years.
- 410,000 vehicles delivered in 2025.
- Targeting 550,000 for 2026.
- EV unit profitable since November 2025.