Xiaomi Sees 289,000 Orders in First Hour of Its Electric SUV Launch

Xiaomi drew strong initial orders for its first electric sport utility vehicle (SUV) intended to compete with Tesla's Model Y in China, sending its shares soaring 8 percent to an all-time high on June 27.

- 

BEIJING -

The company a day earlier took the wraps off the 253,500 yuan ($45,000) YU7, debuting its second car in a crowded electric vehicle (EV) market while grappling with scrutiny over its assisted-driving technology.

Xiaomi drew 289,000 orders—better than anticipated—in its first hour of availability.

"Consumer demand for Xiaomi's YU7 far exceeds our and market expectations, which should enable Xiaomi to continue consolidating its leadership position in the premium auto market in China," Goldman Sachs analysts wrote. They raised their price target on the stock by 6 percent to HK$69.

Xiaomi began taking pre-orders on June 26, with a 5,000 yuan deposit. In a surprise twist, founder Lei Jun declared that buyers of Xiaomi's first car—the SU7 sedan—would have three days to switch to the SUV if they had not taken delivery of the original vehicle.

Xiaomi announced shortly after the event that it had processed more than 200,000 pre-orders for the YU7 within three minutes.