Chinese smartphone giant Xiaomi has received more than 200,000 pre-orders for its new YU7 electric SUV in just three minutes of launch.
Xiaomi said in a social media post that it had received more than 289,000 pre-orders for the YU7 within one hour of the sale.
The extraordinary demand marks a significant milestone for the company, which only entered the electric vehicle market last year with its SU7 sedan.
Following the opening of pre-orders on its website, Xiaomi saw its company's shares surge to an all-time high.
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The Xiaomi YU7 was pre-ordered 200,000 times in just three minutes
REUTERS
The Beijing-based technology firm's Hong Kong-listed shares surged eight per cent to HK$61.45 (£5.71) in early trading before closing up 3.6 per cent.
The YU7 is priced at 253,500 yuan (£25,790), positioning it to compete directly with Tesla's Model Y, which it undercuts by nearly four per cent.
The YU7 has a staggering battery range of 835km (518 miles), as well as a top speed of 253kmh and acceleration from 0-100kmh in just 3.23 seconds.
This aggressive pricing strategy could force Tesla to respond with its own price reductions in the region.
The Xiaomi YU7 will be available for as little as £25,790
REUTERS
Citi analyst Jeff Chung said Tesla, which is currently fifth in the Chinese EV market, might have to reduce its prices in response.
He even suggested that Tesla should end subscription fees for its full self-driving platform, extend a zero-interest loan offered to customers from five to seven years and provide more financing incentives.
Chung estimated future monthly sales of the YU7 to be about 60,000 to 80,000 cars, marking a major boost to the brand's future in the EV market.
The vehicle represents only Xiaomi's second model but has already demonstrated the company's ability to disrupt China's highly competitive electric vehicle market.
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REUTERS
BYD leads China's new energy vehicle (NEV) market, with a share from January to the end of April of 29 per cent on sales just shy of one million cars.
This dominance contrasts sharply with Tesla's market share of just under five per cent and Xiaomi's 3.5 per cent.
Otto Shi, a 26-year-old Tesla Model Y owner who works in finance, told Reuters he was considering getting a YU7 for his father, who currently drives a Mercedes-Benz.
"We could take turns to drive the Model Y and YU7," he said, adding that he was impressed by Xiaomi's prowess in supply chains and the SU7's success had made him believe Xiaomi is the ideal Chinese brand to switch to.
Xiaomi's shares have risen more than 70 per cent this year, making it one of the top-performing companies on the Hong Kong stock exchange this year. The company is now valued at roughly £139billion, establishing it as the best-performing large-cap stock in Asia Pacific.
The rapid growth of China's electric vehicle sector has seen production of new energy vehicles, including EVs and hybrids, increase by more than 46 per cent in the first four months of the year.
Meanwhile, cars with internal combustion engines declined by six per cent, according to data from Shanghai-based consultancy Automobility.
Foreign groups, which dominated the Chinese market for decades, now hold just 31 per cent market share across EVs and fuel-powered cars, highlighting the dramatic shift towards domestic manufacturers.
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