Chinese EV manufacturers such as BYD and smartphone maker Xiaomi are starting to inflict some damage to Tesla’s EV market.
Xiaomi has launched its first electric vehicle (EV) and started taking orders.
The company reportedly announced that the standard SU7 model would be priced at 215,900 yuan ($29,872; £23,663), while the Max version would be available for 299,900 yuan.
Xiaomi boasted over 50,000 orders within the first 27 minutes of sales.
Xiaomi’s foray into the electric vehicle market occurs amid a global slowdown in sales growth, sparking a pricing war.
This strategy positions the tech company against EV competitors such as Tesla and BYD. In China, the entry-level price for Tesla’s Model 3 stands at 245,900 yuan.
It was reported that the SU7 would have a minimum range of 700km (435 miles), beating the Tesla Model 3’s 567km.
The company is optimistic that the SU7’s unified operating system, which is compatible with its phones, laptops, and other devices, will attract current customers.
Xiaomi ranks as the world’s third-largest smartphone seller, holding approximately a 12% market share.
Numerous global EV manufacturers, including BMW, Audi, Nissan, and Hyundai, are encroaching on Tesla’s market share. Additionally, Chinese EV producers are entering the market with increasingly affordable alternatives.
How will Tesla respond?