Xiaomi Corp.’s YU7 SUV outsold Tesla Inc.’s Model Y in China’s EV market in January, with 37,869 deliveries compared to Tesla’s 16,845. The YU7’s success is attributed to its lower price point and analysts’ anticipation of capturing market share from Tesla.

Despite being December’s top seller, Tesla’s Model Y dropped to 20th place in January, with the YU7 ranking third among new energy vehicles. Xiaomi plans to expand globally, targeting Europe next year.

Xiaomi’s success with the YU7 comes after a challenging year for Tesla in China, which faced a sales decline in 2025. Xiaomi’s electric vehicle division gained momentum with the YU7’s success, despite a rocky start with the SU7 Ultra EV sales plummeting in December.

Read more at Yahoo Finance: Tesla Rival Xiaomi’s YU7 SUV Overtakes Model Y China Sales In January