Xiaomi's new luxury SUV EV, the YU7, has been revealed and will cost less that the Tesla Model Y in China, the vehicle that the company has identified as their main competition. Will this model kill Tesla's market share in the PRC?

The Xiaomi YU7 has joined the automaker's lineup, setting its sights on what is Tesla's most popular model at the moment. And even its starting price is a bit cheeky: 253,500 RMB translates to just over $35,000, which you may recall was the blink-and-you-missed it base price of the Model 3.

The company received 289,000 orders for the YU7 - only its second vehicle and one that undercuts Tesla's Model Y in price by nearly 4% - in its first hour on sale, according to CEO Lei Jun. That was more than three times the level for its SU7 electric sedan launched in March last year and easily exceeded market expectations of around 100,