DIGIVESTASI - Xiaomi is selling its first electric car at a much lower price than the Tesla Model 3. This "price war" tactic has created a fierce competition between the Chinese company and Elon Musk's US giant Tesla.

Xiaomi CEO Lei Jun said the standard version of the SU7 will sell for 215,900 yuan (Rs 474 million) in China. While the Tesla Model 3 is priced at 245,900 yuan (Rs 540 million) in China. 

Lei claims that the standard version of the SU7 has 90% better specifications than the Model 3, with two exceptions: he believes it will take at least three to five years for Xiaomi to catch up with Tesla. He also said the Model 3 has a minimum range of only 606 kilometers, while the SU7 has a minimum range of 700 kilometers. According to the company, as of 22:00 Beijing time on Thursday (March 28), orders had exceeded 50,000 units within 27 minutes of the launch. 

Lei promised that deliveries of Xiaomi's electric cars will begin by the end of April. He also claimed Xiaomi's fully automated car factory can produce an SU7 every 76 seconds. It is not yet clear whether the factory is fully operational. Earlier this week, Lei said on social media that the SU7 is the best sedan under 500,000 yuan.

The car has entered the highly competitive Chinese market, with many companies launching various new models and cutting prices in order to survive. 

The SU7 is part of Xiaomi's recently launched "People x Car x Home" strategy, which aims to create an ecosystem of connected devices on its new HyperOS operating system. The majority of the company's revenue comes from HP, with less than 30% coming from devices and other consumer products. 

Meanwhile, the Tesla Model 3 is the best-selling new energy sedan in China, with a range of at least 600 kilometers and a price of less than 500,000 yuan, according to data from industry website Autohome.  In the United States (US), Tesla is the market leader in electric vehicles (EVs). However, globally, Tesla is under pressure from fierce competition with other manufacturers.  

In China, Tesla is losing ground to local automakers that produce vehicles with advanced features and affordable prices. In addition to the newly expanded Xiaomi, BYD is also actively expanding overseas. 
In the fourth quarter of 2023, Warren Buffett-backed BYD overtook Tesla to become the world's largest electric car maker. BYD sells more battery-powered vehicles than Elon Musk's company.

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