A Chinese smartphone manufacturer is actually giving Tesla a run for their money in the electric vehicle space!

It looks like Tesla’s reign is running low on charge, as it faces more stiff competition from China. Xiaomi, a Chinese company known for making smartphones, has just launched its first electric vehicle, the SU7. 

Now, for some of you, this might be the first time you’ve heard the name Xiaomi, but the company is quite popular for phones like the Redmi Note 13 and the 13 Pro. It’s also the third largest smartphone manufacturer behind Apple and Samsung. And while venturing off into the EV market might seem like risky business for a smartphone company, the vehicles have already attracted a lot of interest. 

And that’s putting it lightly. The company received 120,000 orders in just 36 hours, maxing out its production capacity for the rest of the year. It’s only April! 

The SU7 is a four-door electric sedan that has up to 220 kilowatts of power. Its max speed is 130 miles per hour or 210 kilometres per hour.  It can reportedly go from 0-100 mph in just 5.3 seconds!

So it has some pretty impressive specs. Is that what’s driving this massive intrigue? Maybe, but the price definitely has something to do with it. 

The SU7 has been compared to Tesla’s Model 3 a lot, but the SU7 is about US$4,000 cheaper than the Model 3 and reportedly has a longer driving range. So Tesla, which was already facing a slowdown in sales in China, is now coming head to head with a formidable competitor that boasts impressive specifications and a lower price point.

But it hasn’t all been smooth sailing. 

I mean, the EV market as a whole is under a lot of pressure right now, in terms of customer support etc. We did another video talking about the market’s issues, so check that out. 

Also, in addition to trying to fight against Tesla and other EV manufacturers like BYD, Xiaomi is also kind of fighting itself. Their niche is smartphones. They have no real experience in the EV space. And while the company does have a good reputation for quality and affordability, that’s for its smartphones, not cars. 

Then there’s also the issue of production capacity. Like I said earlier, they’ve already maxed out how many cars they can make this year. That could either be a good thing, low supply generally leads to increased demand – people want what they can’t have right? Or it could make an already lukewarm EV buyers market even colder because they have to wait.

And some analysts are divided on Xiaomi’s prospects. 

Some view it as a natural extension for the company, but others question whether consumers will make the leap from Xiaomi’s gadgets to its premium electric vehicle. 

Plus the company’s shift from affordable electronics to a premium EV brand may pose challenges in a market dominated by established players.

And that’s the bottom line.