Xiaomi Launches More Affordable YU7 Base Trim, Taking Aim at Tesla

Xiaomi has started delivering a new, more affordable entry-level version of its YU7 electric SUV, a strategic move that puts it in direct competition with Tesla. This base model was originally conceived three years ago, but the company pulled the plug on it right before the SUV’s initial rollout. Now that it’s back on the menu, it gives buyers a budget-friendly path into Xiaomi’s EV lineup.

The reintroduction of this standard edition is likely designed to broaden the YU7’s appeal, especially in a market where price sensitivity is high. By offering a cheaper variant, Xiaomi can attract customers who might otherwise consider a Tesla, while still maintaining its premium positioning with higher trims. The fact that it was planned long ago suggests the company had this strategy in mind from the start, though it delayed execution for reasons that remain undisclosed.

With deliveries now underway, the YU7 standard edition is set to shake up the mid-sized electric SUV segment. It’s a clear signal that Xiaomi is serious about scaling up its automotive ambitions, and it will be interesting to see how Tesla responds to this new challenge in the coming months.