29 Aug 2025, 11:15 PM IST i Analysts speculate that the YU7's debut is going to lead to more market share loss for Tesla. The EV-maker's slice of the Chinese market EV pie has gotten thinner and thinner, decreasing from 15% in 2020 to 7.6% in the first five months of 2025. The Xiaomi YU7 also has a superior driving range of 835 km from a single charge as compared to the Model Y's 719 km. This is due to the latter having a smaller battery of 78.4 kWh compared to the YU7's 96.3 kWh. Tesla also charges an extra 64,000 yuan for access to its smart driving software feature. The YU7 does not have additional charges for its 'drive-assistance' software and also has drawers in the backseat for storage. Analysts at Citi, cited by Reuters, stated that Tesla might have to slash prices and offer its smart driving for free to compete with Xiaomi. ALSO READ