On June 26, Xiaomi released its first SUV, the Xiaomi YU7. Lei Jun said that this model surpassed Tesla in many aspects in terms of parameters.

Specifically, the YU7 standard version has a battery capacity of 96.3kWh and a CLTC battery life of 835 kilometers, which is 242 kilometers more than the Tesla Model Y rear-drive version. The battery capacity is 33.8kWh higher, but the starting price is deliberately lowered by 10,000 yuan to 253,500 yuan; while the Max version has a zero-hundred acceleration in 3.23 seconds and a 690-horsepower dual motor performance that surpasses the Model Y performance version by 0.47 seconds, and the price is still 25,000 yuan lower.

The technologies used by traditional luxury brands for high-profile models such as Lidar, NVIDIA Thor smart driving chips (700TOPS computing power), and 800V silicon carbide high-voltage platforms (replenishing 620 kilometers in 15 minutes) have been lowered to entry models by Xiaomi as the basic configuration.This product logic of "entry is top-notch matching" became a highlight of last night's press conference.

In fact, as early as before the release, Xiaomi had already spread the warm-up of the YU7, accurately benchmarking the Tesla Model Y, the hottest pure electric SUV in the global market.Previously, Lei Jun had long warned its price: "Xiaomi Yu7 is at least sixty to sixty thousand more expensive than Model Y, so it is impossible to be cheaper than it.However, at the press conference, the Xiaomi YU7 was officially unveiled at a more impressive starting price of 253,900 yuan, which was about 10,000 yuan cheaper than the Model Y.

"Price reduction without reduction in allocation", Xiaomi YU7 sold out directly after its launch. It exceeded 200000 units in 3 minutes and 289000 units in 1 hour, setting a sales record for global car companies.What is the concept of this record?The one-hour order volume of YU7 is equivalent to 76% of BYD's total new energy sales in April, which has a siphon effect on potential customer resources in the price range of 250,000 - 350,000 yuan.

Subsequently, UBS issued a report stating that the pre-sales volume of Xiaomi YU7 exceeded expectations and the expansion of production capacity is worth observing.According to the bank's survey this week, investors expect 200,000 to 300,000 units to be booked within 24 hours before the new car is released (a RMB 5,000 deposit, free cancellations within 7 days), which means 2 to 3 times the 88,000 units at 7:00 in March 2024.The target was reached in three minutes after opening and reached 289,000 vehicles in one hour.

The report pointed out that although the starting price of Xiaomi's YU7 was close to UBS's expectations, the bank was pleasantly surprised by the option of upgrading outstanding SU7 orders to YU7.It is estimated that the current backlog of orders for the SU7 exceeds 100,000, and most buyers of the SU7 Pro and SU7 Max have a strong incentive to upgrade to the YU7 because of the similar price but better performance.As demand significantly exceeded expectations, Xiaomi urgently needed to increase its electric vehicle production capacity.The bank gave Xiaomi a "neutral" rating with a target price of 62 yuan.

Hong Kong stocks opened today, and Xiaomi Group opened higher, reaching a new high of 61.45, with a turnover of nearly HK$9.2 billion.

Citi said that the order volume for YU7 has exceeded the expectations of most buyers, which has given a positive boost to Xiaomi's share price.YU7 's outstanding sales will help meet Citi's goal of shipping 400,000 electric vehicles in 2025.

Xiaomi's subsequent production capacity expansion plan for its electric vehicles is expected to further boost investor confidence.Citi believes that the next potential catalyst will be second-quarter results or third-quarter results guidance for 2025.