Xiaomi Launches $35K Electric SUV, Boosts Shares, Market Value

Chinese tech giant Xiaomi has launched its first electric SUV, the YU7, and AI-powered smart glasses, marking a significant expansion into the automotive and AI consumer electronics markets. The YU7, priced starting at around $35,400, offers an extended driving range of up to 835 kilometers, outperforming Tesla's Model Y in several aspects while undercutting its price by approximately 10,000 yuan. Xiaomi's CEO Lei Jun emphasized the SUV's advanced features including Nvidia-powered driver-assist technology and AI enhancements like gesture controls and Apple integration, with deliveries starting within weeks. Alongside the SUV, Xiaomi unveiled AI glasses priced at 1,999 yuan that support real-time translation, photography, and contactless payments, showcasing the company's push into AI-enabled portable tech. Xiaomi's shares surged over 5% in Hong Kong trading on strong demand, with order volumes reaching over 200,000 within minutes, driving the company's market valuation close to $187 billion in 2025. This launch underscores Xiaomi's strategy to leverage its tech ecosystem and advanced manufacturing to disrupt traditional auto markets while integrating smart mobility into its broader digital product portfolio.