Tesla Model Y is priced at 263,500 yuan in China, and with the recent launch of Xiaomi YU7, the American EV maker is likely to witness a dip in its market share.

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,