Xiaomi teases Tesla-like SUV for summer in big EV expansion

Xiaomi Corp. showed off a new SUV it plans to sell around the summer of 2025, intensifying an effort to take on Tesla Inc. and BYD Co. in the world's biggest electric vehicle arena.

Billionaire founder Lei Jun unveiled the YU7, a sport utility vehicle similar to Tesla's Model Y, in a Weibo post. The 5 meter-long car is a pure electric SUV, fitted with a nickel-cobalt-manganese battery to be made by Contemporary Amperex Technology Co. Ltd. The motor will have a peak power of 220kW or 288kW, according to a separate notice from China's Ministry of Industry and Information Technology.

An SUV would mark a big expansion of Xiaomi's $10 billion EV endeavor, spearheaded personally by Lei. The company is trying to reduce its reliance on a volatile smartphone market dominated globally by Apple Inc., though with EVs it's getting into a crowded arena and taking on established rivals Tesla and BYD.

It's unclear what specifications and pricing Xiaomi envisions for the SUV - a type of larger vehicle gaining in popularity across China. But the plan could prop up Xiaomi's stock as it takes shape.

Citigroup analysts including Kyna Wong held out the possibility that Xiaomi might exceed 2025 shipment estimates on the strength of the new model.