The impending launch of an SUV has premium EV-makers worried Comments BYD made more EVs than Tesla for the first time last year – proving that the world wants affordable electric options Tesla was the first foreign automotive manufacturer to wholly own a factory in China, with its rivals having to share profits and technology with domestic companies under various joint ventures and partnerships. But now, it seems that the view of Tesla as a luxury foreign EV maker is waning and demand for Tesla’s cars in general is cooling. Despite a revamped Model Y going on sale in China recently, its overall sales in the country dipped by 51.47% in January, according to Teslarati. While the Model 3 is rapidly slipping down the Chinese sales charts, the Model Y was the second best-selling car at the end of last year, only marginally beaten by the much smaller BYD Seagull, according to Car News China. To compound Musk's woes further, Xiaomi is gearing up for full-scale production of its second EV – the YU7 SUV that will directly challenge Tesla’s Model Y, as well as more premium offerings from Mercedes-Benz, BMW and Porsche. Get daily insight, inspiration and deals in your inbox Sign up for breaking news, reviews, opinion, top tech deals, and more. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. With such a compelling offering and plans to expand into global markets, Xiaomi might not just have a "Tesla-killing" line-up, but one that could have the wider automotive industry worried. Xiaomi 'going global' will hit premium EV makers (Image credit: Xiaomi) Speaking at Mobile World Congress in Barcelona this week, Xiaomi’s President William Lu told CNBC the company will be releasing EVs for the global markets “within the next few years”. The announcement was timed with the launch and unveil of the SU7 Ultra, a high-performance, 1,517hp version of its best-selling EV that requires a special test to drive in China and has been breaking lap records at the Nurburgring. Slated to cost 529,000 Chinese yuan (or around $72,627), it undercuts the most potent electric model from Porsche – the Taycan Turbo GT – by over $200,000, as well as offering levels of race-focussed Performance that Tesla’s Plaid badge could only dream of. The debut SUV from Xiaomi is due to go into production this summer and, as with the SU7, customer demand is already at fever pitch. The company’s share price hit an all-time high in February when it released more specific details of its second model. It’s easy to see why, with a driving range of 510 miles (123 more than the 2025 Tesla Model Y), a staggering 691hp on tap, smartphone-derived in-car technology and the latest Lidar-based autonomous driving tech, it represents excellent value for money... and it's not bad looking, either. You might also like