Xiaomi challenges Tesla in Chinese market with $29,870 electric car

Xiaomi against Tesla in China: Chinese technology giant Xiaomi unveiled its latest venture into the electric vehicle (EV) market with the launch of a sporty electric car priced competitively below Tesla's Model 3. 

During the launch event, Xiaomi CEO Lei Jun revealed that the standard SU7 EV model would be priced at 215,900 yuan ($29,872.02), undercutting Tesla's offering. 

The new electric car, drawing inspiration from Porsche's styling cues, promises advanced features surpassing those of both Tesla and Porsche, according to Lei. 

Xiaomi's entry into the EV market aligns with Lei's ambitious plan announced in 2021, investing $10 billion in the auto business. 

The company's manufacturing partnership with state-owned automaker BAIC Group facilitated the production of the SU7 sedan, first showcased in December. 

Xiaomi's move received an overwhelming response, with 50,000 orders placed within 27 minutes of opening sales. Deliveries are scheduled to begin in late April for standard models and in May for Pro models. 

However, analysts remain divided on Xiaomi's prospects in the competitive EV market, questioning whether consumers will embrace the company's transition from electronics to premium EVs. 

Despite challenges, Xiaomi's diversified revenue streams and expertise in smartphones could give it an advantage, particularly in smart cockpit technology highly valued by Chinese consumers. 

The SU7 features Xiaomi's self-developed Hyper OS, integrating EV users with its ecosystem of devices, including smartphones.

(With Reuters Inputs)