Xiaomi delays YU7 reveal, market reacts as anticipation deflates
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Xiaomi shares dropped 4.5% on Wednesday after the tech-turned-EV giant confirmed it will not unveil its highly anticipated YU7 electric SUV at China’s largest auto show next week. The move caught both investors and consumers off guard, as the YU7 had been widely expected to be a central highlight of the Shanghai event — a strategic stage where Xiaomi was poised to challenge Tesla’s dominance in the mid-size EV SUV segment.
Vice President Li Xiaoshuang took to Weibo to confirm that only the SU7 and SU7 Ultra sedans would be featured, while offering reassurances that the YU7 “will arrive in its best state.” His comment, however, did little to appease the wave of disappointment that followed among followers and auto enthusiasts, particularly given that CEO Lei Jun had previously teased a June or July launch through regular updates to his 26.5 million followers on the platform.
This delay is particularly significant in light of Xiaomi's recent EV momentum. Since the SU7 sedan launched last year, it has consistently outsold Tesla’s Model 3 in China, marking a notable entry into the electric vehicle space for a company best known for smartphones and smart home appliances. The absence of the YU7 at such a high-profile event could slow Xiaomi’s effort to solidify its presence in the increasingly crowded and fiercely competitive Chinese EV market — especially in the lucrative SUV segment where the Model Y remains the benchmark.
Adding to the complexity is the shadow cast by a fatal SU7 crash in March, where an advanced driver-assistance-equipped vehicle collided with a roadside pole at nearly 100 km/h, igniting a fire that killed three. The incident reignited public debate on the safety of intelligent driving systems and triggered critical responses from Chinese state media, which cautioned automakers against overselling semi-autonomous features.
Operationally, Xiaomi's decision to hold back the YU7 unveiling may be strategic, aimed at controlling narrative timing amid recent controversies. However, the short-term impact is clear: the delay dampens investor sentiment and consumer enthusiasm, potentially ceding ground to rivals. For market participants, attention should now shift to Xiaomi’s official launch window in mid-2025, Tesla’s response in pricing or marketing strategy, and ongoing developments around EV safety regulation in China.
Vice President Li Xiaoshuang took to Weibo to confirm that only the SU7 and SU7 Ultra sedans would be featured, while offering reassurances that the YU7 “will arrive in its best state.” His comment, however, did little to appease the wave of disappointment that followed among followers and auto enthusiasts, particularly given that CEO Lei Jun had previously teased a June or July launch through regular updates to his 26.5 million followers on the platform.
This delay is particularly significant in light of Xiaomi's recent EV momentum. Since the SU7 sedan launched last year, it has consistently outsold Tesla’s Model 3 in China, marking a notable entry into the electric vehicle space for a company best known for smartphones and smart home appliances. The absence of the YU7 at such a high-profile event could slow Xiaomi’s effort to solidify its presence in the increasingly crowded and fiercely competitive Chinese EV market — especially in the lucrative SUV segment where the Model Y remains the benchmark.
Adding to the complexity is the shadow cast by a fatal SU7 crash in March, where an advanced driver-assistance-equipped vehicle collided with a roadside pole at nearly 100 km/h, igniting a fire that killed three. The incident reignited public debate on the safety of intelligent driving systems and triggered critical responses from Chinese state media, which cautioned automakers against overselling semi-autonomous features.
Operationally, Xiaomi's decision to hold back the YU7 unveiling may be strategic, aimed at controlling narrative timing amid recent controversies. However, the short-term impact is clear: the delay dampens investor sentiment and consumer enthusiasm, potentially ceding ground to rivals. For market participants, attention should now shift to Xiaomi’s official launch window in mid-2025, Tesla’s response in pricing or marketing strategy, and ongoing developments around EV safety regulation in China.