Xiaomi (1810.HK) Rockets 4% as YU7 SUV Sends Investors Into Frenzy – Can the Rally Hold?

Xiaomi's stock just got a turbocharged boost—thanks to its new electric SUV stealing the spotlight.

The YU7 effect: Investors piled into Xiaomi Corp. (1810.HK) after its SUV debut, sending shares soaring nearly 4%. Because nothing revs up a tech stock like hardware theatrics—even as skeptics whisper 'show me the margins.'

Why the hype? The market's betting Xiaomi can replicate its smartphone hustle in the cutthroat EV arena. Never mind that legacy automakers are bleeding cash to keep pace with Tesla.

Bottom line: When a smartphone giant pivots to cars, Wall Street either sees visionary disruption... or a desperate grab for growth. Today, they're buying the story—literally.

TLDRs:

• Xiaomi’s stock jumped 3.6% to a record HK$58.95 after its new electric SUV, the YU7, received hundreds of thousands of orders.
• The YU7 boasts a longer range than Tesla’s Model Y, while being priced more competitively at 253,500 yuan.
• Xiaomi’s deep tech ecosystem enhances the YU7’s appeal, integrating smart devices for a seamless user experience.
• Analysts view Xiaomi’s EV pivot as a bold move that could reshape China’s competitive automotive landscape.

Xiaomi’s stock closed at HK$58.95 on June 27, climbing 3.6% in a strong showing following the highly anticipated debut of its new electric SUV, the YU7.

The gains reflect investor enthusiasm over Xiaomi’s bold push into the electric vehicle market, where it is taking aim at established players like Tesla.

Electric Ambitions Drive Market Excitement

The rally followed the official unveiling of the YU7 on June 26 by CEO Lei Jun. The vehicle, which starts at 253,500 yuan or roughly US$35,300, immediately made waves in the Chinese EV market. In just three minutes, Xiaomi reported over 200,000 pre-orders, a figure that ballooned to 289,000 within the first hour. The strong demand was a clear signal that consumers were ready to embrace Xiaomi as a serious competitor in the premium EV segment.

A Vivo executive commented on Xiaomi's YU7 large pre order quota

"Even as a mobile phone manufacturer we are jealous, congratulations to our friends and Mr. Lei " pic.twitter.com/dC69Qxr4ZO

— Kartikey Singh (@That_Kartikey) June 27, 2025

As pre-orders opened later that evening, investor sentiment surged. The next trading day, Xiaomi shares opened sharply higher and hovered NEAR the day’s peak of HK$61.45 before settling at HK$58.95 by market close. This placed the stock well above its previous close of HK$56.90, notching a fresh record high on the Hong Kong exchange.

Specs and Pricing Fuel Competitive Edge

What sets the YU7 apart is its competitive feature set at a lower price point. The SUV boasts an impressive 760-kilometer driving range, exceeding Tesla’s extended-range Model Y, alongside advanced driver-assistance features powered by Nvidia’s Thor chip. Xiaomi also incorporated gesture controls, Apple CarPlay, Apple Music integration, and its own smart ecosystem into the vehicle, offering a fully connected experience.

By pricing the YU7 roughly 10,000 yuan below Tesla’s Model Y, Xiaomi has drawn a line in the sand. This aggressive pricing signals an intensifying battle for dominance in China’s maturing EV market, where domestic brands are rapidly gaining ground against foreign players. The timing and specs of the launch suggest Xiaomi is positioning the YU7 not just as a rival but as a flagship product to lead its automotive strategy.

Ecosystem Integration Offers Unique Differentiator

What truly differentiates Xiaomi in the EV landscape is its DEEP integration across consumer electronics. With a connected ecosystem of over 700 million IoT devices, Xiaomi enables its vehicles to operate seamlessly with phones, smartwatches, and home devices. At the YU7 launch, the company showcased its AI-connected glasses and demonstrated real-time control of the SUV via smartphone, features that few legacy automakers can match.

This level of interconnectivity is rooted in Xiaomi’s broader strategic vision. Since its founding, the company has developed a vast digital ecosystem, allowing it to deliver a uniquely unified experience across product categories. That long-term investment is now paying dividends as Xiaomi extends its reach from homes to highways.

Tech-to-Auto Pivot Shows Speed and Scale

Xiaomi’s rapid expansion into electric vehicles mirrors a larger trend among Chinese tech companies. Just over three years ago, the company announced its EV plans and broke ground on a factory capable of producing 300,000 vehicles annually. With two models now on the road, the SU7 sedan and the new YU7 SUV, Xiaomi has demonstrated an ability to scale quickly while maintaining its Core identity as a consumer tech innovator.

Market watchers believe this pivot could reshape the traditional automotive hierarchy, with analysts projecting annual sales of up to 360,000 units for the YU7. If that forecast holds, Xiaomi could soon become a dominant force not only in consumer electronics but also in one of the world’s fastest-growing vehicle markets.