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Xiaomi takes aim at Tesla's bestselling car in China with its longer-range YU7

1. Xiaomi launched its YU7 SUV targeting Tesla's Model Y market share. 2. YU7 has a driving range of 760 km, exceeding Tesla's Model Y. 3. Citi forecasts YU7 sales could reach 300,000-360,000 units annually. 4. Model Y ranks low in April sales compared to other EVs in China. 5. Xiaomi's YU7 pricing will compete directly with Tesla's Model Y.

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FAQ

Why Bearish?

Xiaomi's competitive entry with YU7 threatens TSLA’s market share in China. Historical examples show how new entrants can disrupt established players (e.g., BYD's impact on Tesla).

How important is it?

The YU7 is a direct competitor to TSLA's Model Y, which could directly influence TSLA’s sales and investor sentiment in the Chinese market.

Why Short Term?

Immediate consumer preference shifts in the EV market can affect sales. Past launches from competitors like BYD quickly altered market dynamics.

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