Xiaomi Unveils EV $4K Cheaper Than Tesla’s Model 3

As the battle to bring the most cost-effective electric vehicles to the market heats up, the Chinese smartphone company Xiaomi announced that its first electric car will go on sale for significantly less than Tesla’s Model 3.

Xiaomi’s CEO, Lei Jun, explained that the standard model of the SU7 will hit the market in China with a competitive price of 215,900 yuan ($30,408), marking a daring move by the company despite selling each vehicle at a loss. This pricing strategy positions the SU7 as a strong contender against Tesla’s Model 3, which starts at a higher price point of 245,900 yuan in the Chinese market.

Lei said the standard edition of the SU7 overtook Tesla’s Model 3 on over 90% of its specifications. However, he noted that two areas could take the company at least three to five years to get up to speed with Tesla. Highlighting the SU7’s impressive features, Lei mentioned its minimum driving range of 700 kilometers (approximately 435 miles), beating the Model 3’s range of 606 kilometers. Xiaomi reported an overwhelming response to the SU7, with orders exceeding 50,000 cars within just 27 minutes of its launch on Thursday at 10 p.m. in Beijing.

Lei said that by the end of April, deliveries are scheduled to commence. He also shared a bit about the company’s car factory, which has entirely automated “key” steps, giving the ability to turn around the production of an SU7 vehicle every 76 seconds. However, it remains unclear whether the factory is currently operating at full capacity.

On Thursday, Jun posted on X about the SU7, saying, “This special model boasts a unique metal signature that adorns both the exterior and interior. For an added touch of exclusivity, it features a numbered nameplate fixed onto the steering wheel and carbon fiber rearview mirrors.”

The SU7 is stepping into a fiercely competitive market in China, where companies are bringing a range of fresh models to the market at cheaper price points to be able to survive. Tech giant Huawei based in China has joined forces with automobile manufacturers such as Aito for new cost-effective EVs.

According to the China Passenger Car Association, sales of new energy vehicles, which include battery-only powered cars, have shot up in China to accommodate for around one-third of new passenger cars sold.