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Xiaomi is set to ramp up EV production in Tesla challenge.
Shares in Chinese EV maker Xiaomi (XIACF) dropped over 4% today despite hailing the record-breaking 500,000th vehicle rolling off its production line.
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Best-Ever Figures
According to TechNode, the company reached the figure in just over 19 months, a best-ever achievement by a global new energy vehicle maker. The development could heat up the pressure on U.S. rivals including Tesla (TSLA).
That’s because industry analysts said the move marked a shift towards mass production in China’s smart electric vehicle sector. In addition, it signaled Xiaomi’s ability to scale up production quickly, reflecting growing consumer confidence in China and its increasing market presence.
Xiaomi founder Lei Jun posted on Weibo that while the figures might look modest for industry giants, it “represents significant progress for Xiaomi Auto, demonstrating the company’s strength across R&D, manufacturing, sales, delivery, and service.”
He said Xiaomi will now accelerate production numbers and focus on increasing technological innovation such as further integrating AI with smart manufacturing.
Taking on Tesla
The company’s recent third-quarter earnings report revealed that Xiaomi Auto recorded 108,796 deliveries in Q3. That’s up from 75,869 vehicles in Q1 and 81,302 in Q2.
It added that its YU7 was ranked first in domestic SUV sales in October.
Back in the summer, Xiaomi said it received 200,000 orders in just three minutes for the YU7. It is priced at around $35,000, making it 4% cheaper than Tesla’s rival Model Y in China.
It also boasts a top range of 835 km, leaving the Model Y with its 719 km reach way behind in its rearview mirrors. It can also accelerate from zero to 62mph in just 3.23 seconds.
Despite it being a key market, Tesla’s sales have struggled in China due to increased competition, a need for a vehicle refresh, tariffs and brand reputation.
Xiaomi has challenged and beaten Tesla before. Its EV SU7 sedan launched last year has outsold Tesla’s Model 3 in China, selling over 200,000 as of April 2025.
Deutsche Bank expects Xiaomi to deliver 100,000 YU7 SUVs this year and 280,000 SU7s.
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