Chinese tech giant Xiaomi has made a powerful entry into the electric SUV segment with its new YU7, securing over 240,000 orders within just 18 hours of launch. This overwhelming demand highlights Xiaomi’s growing influence in the electric vehicle (EV) industry and signals rising competition for Tesla in China’s fiercely competitive EV market.The YU7, priced at 253,500 yuan (approximately $35,360 or ₹30.3 lakh) , undercuts the Tesla Model Y by more than 4%, fueling speculation that the American EV maker may soon be forced to cut prices or offer additional incentives to maintain its market share.Xiaomi YU7 vs. Tesla Model Y: Price and Specs ShowdownThe YU7 is Xiaomi's second EV, following the successful launch of its SU7 sedan in March last year. This latest model boasts a 96.3kWh battery pack , delivering an impressive range of up to 835 km on a single charge which is significantly more than the Tesla Model Y’s 78.4kWh battery and 719 km range .Xiaomi’s YU7 is packed with features aimed at value-conscious consumers, including:Rapid charging supportUnder-seat storage drawersFree driver-assistance software , which Tesla charges approximately 64,000 yuan for in the Model YAlso Read: Tesla Ready to Open Showrooms in July with China-Made EVsMarket Impact and Analyst InsightsFollowing the announcement, Xiaomi’s shares surged to record highs on Friday , reflecting investor confidence in the company’s EV strategy. Analysts from Citi noted in a client briefing, “Tesla may be forced to reduce prices further or consider bundling its Full Self-Driving (FSD) system for free to stay competitive.”The 240,000 orders include both confirmed purchases and pre-bookings , indicating strong market confidence in Xiaomi's ability to deliver premium electric vehicles at disruptive price points.With the launch of the YU7, Xiaomi has made it clear that it's not just experimenting in the EV space, it's here to compete. As the battle for EV dominance in China intensifies, consumers stand to benefit from more affordable and feature-rich options, while legacy players like Tesla may need to rethink their pricing strategies to stay ahead.Also Read: BYD Seagull Dominates Global EV Charts; Will India be the Next Stop?