Tesla's Market Share in China Expected to Decline
Price Cuts Anticipated as a Response
Chinese tech giant Xiaomi announced that it received approximately 300,000 pre-orders for its first electric sports utility vehicle (SUV), the YU7, within just one hour of its launch.
According to Reuters and other sources on June 27, Xiaomi posted on Weibo, stating, "We received 289,000 pre-orders within one hour of the sales launch."
Previously, Xiaomi CEO Lei Jun revealed that immediately after the YU7 launch on the previous day, the company received 196,000 orders within two minutes, of which 128,000 were non-refundable lock-in orders.
Xiaomi had previously announced that when it launched its first electric vehicle, the SU7 (Speed Ultra 7, known as Suqi in China), last year, it received over 50,000 orders within 27 minutes.
In March, all three passengers in an SU7 died in an accident, sparking safety concerns. However, following the news of the surge in orders, Xiaomi's stock price soared by as much as 8% during intraday trading on this day.
The newly announced YU7 is an electric SUV that is priced lower than the Tesla Model Y but is considered to offer superior performance. Reuters reported that, as Tesla's market share in China is expected to decline, the company is likely to respond by lowering prices.
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