Orders surge for Xiaomi's new YU7 electric SUV, shares jump to record high

Xiaomi (1810) won more orders than expected for its new YU7 electric sports utility vehicle in the first hours after it went on sale, sending the company's shares up 8 percent to an all-time high.

The Chinese EV and smartphone maker on Thursday priced its new electric YU7 SUV from 253,500 yuan (HK$277,560), almost 4 percent below Tesla's Model Y.

The YU7 received 289,000 orders in the first hour on sale, Xiaomi said. This was more than three times the level achieved for its first EV, the SU7, when it was launched in March last year.

"YU7 seems to be selling like hot cakes," Jefferies analysts said in a note, adding that demand was stronger than expected.

The YU7 would likely be able to take market share from the Model Y, China's best-selling SUV, as Xiaomi has targeted, they said.

"YU7's pricing is slightly below that of Tesla Model Y but it offers much better specs and performance," said the Jefferies analysts.

Xiaomi shares opened up 8 percent after the car went on sale and were last trading up 5.5 percent.

Reuters