Xiaomi releases electric car $4K cheaper than Tesla’s Model 3 as price wars heat up

Xiaomi, the renowned smartphone manufacturer, has unveiled its first electric car, the SU7.

Despite acknowledging that the standard version will be sold at a loss, Xiaomi CEO Lei Jun believes it outperforms Tesla’s Model 3 in most specifications, except for two areas, where it expects to catch up within three to five years.

Priced at 215,900 yuan (around $30,408), the SU7 undercuts the Model 3’s starting price in China by 30,000 yuan.

Xiaomi claims the SU7 boasts a longer minimum driving range of 700 kilometers (vs. 606 kilometers for the Model 3) and has received over 50,000 orders within the first 27 minutes of sales.

The SU7 represents Xiaomi’s entry into a fiercely competitive Chinese electric car market, where companies like Huawei, Tesla, BYD, Nio, Xpeng, and Geely-owned Zeekr are vying for market share.

Xiaomi’s automated factory aims to produce an SU7 every 76 seconds, further fueling its ambition.

In a bid to attract customers, Xiaomi also introduced a range of accessories, including an in-car refrigerator, customized window shade, and smartphone holder, which are available for free with car purchases before the end of April.

The SU7 supports Apple’s Car Play and integrates with the iPad.

Driver-assist technology, set to be fully available in China in August, was also showcased.

Despite expressing aspirations to compete with Porsche in the future, Xiaomi recognizes that the SU7 still has a way to go.

The “Max” version, positioned as a competitor to the Porsche Taycan, will be priced at 299,900 yuan.

Xiaomi’s car is part of its “Human x Car x Home” strategy to develop an ecosystem of connected devices running on its HyperOS operating system.

While the SU7 will initially launch in China, an overseas launch is not expected for at least two to three years.