Tesla’s journey in China is nothing short of a tragic-comedy. Tragic for the Elon Musk-led company and comedy for its competition. The American EV company slumped to seventh place in China as the sales in February witnessed a loss of 51.5% compared to January and plunged 49.2% year-on-year, based on a report by the China Passenger Car Association (CPCA).
If there’s a saying that fits Tesla’s current situation, it’s this — One man’s nightmare is another man’s dream. While Tesla’s sales are dwindling, BYD, the world’s largest EV maker, is charging ahead, and Xiaomi, the smartphone giant, has decided to join the party. Xiaomi not only outsold Tesla’s Model 3 in December but is now rolling up its sleeves to launch the YU7 SUV, a direct rival to Tesla’s Model Y. Looks like Tesla’s Chinese adventure just got a lot more electrifying.
Xiaomi YU7: What to expect?
According to Reuters, Xiaomi is going to launch its new crossover SUV, the YU7 this summer. Based on the leaked government documents seen by Reuters, the YU7 will be available in three versions with a range of 770 km, 675 km and 760 km on a single charge respectively. These figures are based on the Chinese CLTC standard.

Tesla launched the updated 2025 version of Model Y at the end of February and based on reports the new EV SUV offers a much improved range. The long-range variant offers 719 kilometres per charge, up from 688 km, while the rear-drive variant offers 593 km, an increase from the 554 km range.
Xiaomi SU7 Ultra: Flagship model
Xiaomi wants to be a serious player in the EV sector. Following its 2023 debut with the SU7 sedan in China, the model has already surpassed the popular Tesla Model 3 in sales. To further solidify its position, Xiaomi introduced the SU7 Ultra in February, now its flagship EV.
This high-performance sedan packs three electric motors, delivering a staggering 1,527 bhp, accelerating from 0 to 100 kmph in just 1.98 seconds, and reaching a top speed of 350 kmph. The SU7 Ultra also boasts a peak chassis system fine-tuned at the Nürburgring Nordschleife, offering superior handling and control. Additionally, it comes with optional upgrades like the Racing Package and the Nürburgring Nordschleife Limited Edition.