Latest Tesla China Rival Xiaomi's First EV May Not Be So Cheap As Expected

The top model of Xiaomi Corporation (OTC:XIACY) first entry into the EV market, the Xiaomi SU7, is reportedly priced at approximately $50,350, as per Chinese media reports.

What Happened: According to CnEVPost, the highest variant of the Xiaomi SU7 will be priced at RMB 361,400 ($50,350) including insurance, as per local media outlet Jiemian, which cited an unnamed source from a “major” insurance company.

The entire range of the vehicle is expected to be priced between RMB 250,000 ($35,230) and RMB 370,000. The SU7, equipped with a CATL lithium ternary battery, can reach a maximum speed of 265 kmph. However, this pricing information is still awaiting official confirmation from Xiaomi.

Wang Hua, head of Xiaomi’s PR division, revealed on Weibo that some vehicles are being licensed as part of sales, delivery, and service procedures. He did not comment on the rumored pricing of the SU7.

First unveiled in late December, the Xiaomi SU7’s pricing details were not shared. For context, Tesla‘s Model 3 sedan in China starts at RMB 245,900.

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Why It Matters: Xiaomi, established in 2010, has built a reputation for high-quality, reasonably priced smartphones. With the SU7, the company aims to replicate this success in the EV industry.

With Lei Jun, Xiaomi’s CEO, confirming that the SU7 is in the trial production phase, the market is eagerly awaiting the vehicle’s official launch and pricing announcement. Analysts at Morgan Stanley have indicated a positive outlook for Xiaomi’s potential in the EV market.

Xiaomi’s foray into the EV industry is not surprising. Lei has been investing heavily in this sector as part of a broader plan to create a Xiaomi ecosystem of interconnected smart devices. The shift into the EV market is seen by many as a natural progression for the tech giant, known for its successful smartphone business.

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Image Credits – Xiaomi