Xiaomi’s SU7 becomes China’s first Tesla killer, outselling the Model 3

After five years of playing catch-up, China has produced a worthy “Tesla killer”, a massive achievement for the country’s premium electric vehicle (EV) makers that is set to stoke national pride.Sales of Xiaomi’s fully electric SU7 on the mainland stood at 258,164 last year, nearly 30 per cent higher than the Model 3’s deliveries of 200,361 units, according to data from the China Passenger Car Association (CPCA).Since its debut in China at the end of 2019, the Model 3, assembled at the Gigafactory 3 in Shanghai’s Lingang free-trade zone, led the country’s premium electric sedan category until 2024, despite massive efforts to unseat it by rivals, including Nio, Xpeng and IM Motors.“Tesla’s dominance in the premium EV segment has been eroded by its Chinese competitors that are able to churn out vehicles on par with its technology standards while offering them at lower prices,” said Eric Han, a senior manager at Shanghai consultancy Suolei. “Xiaomi’s success is a strong boost for Chinese carmakers, which are all trying to move up the value chain.”Xiaomi unveiled a refreshed version of the SU7 this month. Photo: EPA-EFETesla’s Shanghai factory also assembles the Model Y, which outsold all other SUVs – including petrol-powered rivals – on the mainland in 2025.