Xiaomi moves ahead with Tesla-like SUV as first EV hits goals
Xiaomi Corp. aims to begin making and selling a sport utility vehicle similar to Tesla Inc.’s Model Y as early as 2025, embarking on a major new expansion with production of its debut SU7 electric car set to reach about a 100,000 units this year.
Xiaomi is approaching full initial capacity and is working now to increase output to accommodate demand, people familiar with the matter said. The company benchmarked its envisioned SUV against Tesla’s during development, the people said, asking not to be identified discussing a private project.
An SUV would mark a big expansion of Xiaomi’s $10 billion EV endeavor, spearheaded personally by billionaire co-founder Lei Jun. The company is trying to reduce its reliance on a volatile smartphone market dominated globally by Apple Inc., though with EVs it’s getting into a crowded arena and taking on established rivals Tesla and BYD Co.
It’s unclear what specifications and pricing Xiaomi envisions for the SUV — a type of vehicle gaining in popularity across China. The company’s plans for production, first reported by local media outlet Yicai, could also shift depending on how it progresses on capacity, the people added. Representatives for Xiaomi didn’t respond to emails and a phone call seeking comment.
Discussions about an SUV began as far back as when Lei announced in 2021 that EVs represented his final major entrepreneurial effort, one of the people said. But the company eventually decided to move first on the SU7, a $30,000-plus sedan with a design aesthetic similar to
