China’s Xiaomi sees shares soar to record highs

Xiaomi’s Electric SUV YU7 Sparks Record High in Stock Prices

The Hong Kong-listed shares of Xiaomi, a Chinese consumer electronics company, soared over 5% to reach a record high on Friday following the successful launch of its new electric car, the YU7. This luxury electric SUV, priced at 253,500 yuan ($35,322), has garnered significant attention from customers and investors alike.

Competing directly with Tesla, Xiaomi positioned the YU7 as a more affordable alternative to the Model Y, priced at 263,500 yuan in China. Within just three minutes of its launch, the YU7 received an impressive 200,000 orders, surpassing all expectations. Analysts had predicted monthly sales of around 30,000 units, with annual sales projected to reach 300,000 to 360,000 units once production ramps up.

Xiaomi’s strategic pricing strategy, undercutting Tesla’s models, has proven successful in capturing market share in the competitive electric vehicle sector. The company’s previous electric sedan, the SU7, also boasted a lower price point compared to Tesla’s offerings.

During the launch event, Xiaomi’s CEO Lei Jun highlighted the YU7’s superior features compared to Tesla’s Model Y, particularly in terms of driving range. With a range of at least 760 kilometers on a single charge, the YU7 outperforms Tesla’s Model Y, which advertises a range of 719 kilometers. This extended driving range addresses a key concern for consumers considering electric vehicles.

In addition to its impressive driving range, the YU7 incorporates advanced AI technology, allowing for innovative features such as hand gesture controls for music playback and AI-powered parking location identification. The SUV also supports Apple Car Play and Apple Music, catering to tech-savvy consumers.

In a bold move to diversify its product offerings, Xiaomi also unveiled a range of artificial intelligence-connected glasses, rivaling Meta’s smart glasses. Priced at 1,999 yuan ($279), these AI glasses offer features such as adjustable tint lenses, QR code payment capabilities, and AI-powered photo and video capture. While Xiaomi has no immediate plans to sell the glasses overseas, the product showcases the company’s commitment to innovation and technological advancement.

Overall, Xiaomi’s foray into the electric vehicle market with the YU7 and its innovative AI glasses signals the company’s ambition to disrupt traditional industries with cutting-edge technology. As the electric car price war intensifies, Xiaomi’s strategic pricing and focus on technological innovation position it as a formidable competitor in the rapidly evolving automotive industry.

This article was written with reference to the original content from CNBC, with contributions from Ying Shan Lee.