China’s Tesla killer? Smartphone maker Xiaomi unveils $56,000 electric vehicle with up to a 500-mile range – and predicts it will overtake Elon Musk’s company

Chinese company Xiaomi announced its first electric car on Thursday, expecting it to be the first step towards overtaking Tesla.

The SU7 will have a range of 500 miles, and will compete for customers with the Tesla Model S, which has a range of 320 to 410 miles.

The Chinese-made car will also feature autonomous driving, an infotainment system fully compatible with Xiaomi smartphones, and incredible acceleration that will take it from 0 to 62 mph in 2.78 seconds.

Pricing has not yet been announced, but CEO and co-founder Lei Jun said at the unveiling that it could range between $14,000 and $56,000 — and the Model S starts at $74,990.

With this move, the smartphone maker joins the ranks of other electronics companies such as Apple and Foxconn that have been trying to break into the transportation business.

Unlike Apple, the company aims to sell its first cars in 2024. Xiaomi is one of the largest smartphone manufacturers in the world.

Li said he expects Xiaomi cars to rival Porsche's performance and Tesla's technology in the Chinese electric vehicle market.

But the car – which is likely to go on sale within several months – makes its debut at a time when China's car market – the world's largest – is grappling with oversupply and slowing demand.

These two factors sparked a fierce price war, but that did not prevent Xiaomi CEO, Lei Jun, from setting big ambitions.

With the SU7, Xiaomi aims to produce a car that rivals competitors in terms of luxury and performance but at a lower price, according to the company's CEO.

Li said it has fast charging capabilities at low temperatures and is equipped with advanced technology, allowing it to recognize obstacles under difficult conditions such as falling snow.

“Through hard work over the next 15 to 20 years, we will become one of the world's top five automakers, and strive to advance China's overall auto industry,” he said at an on-stage unveiling ceremony at the China National Convention Center in Beijing.

He added that these plans include building a “dream car similar to Porsche and Tesla.”

The SU7 is also expected to attract customers due to its common operating system with popular Xiaomi phones and other electronic devices. Its drivers will have seamless access to the company's existing suite of mobile applications.

“Xiaomi is an established consumer electronics brand with hundreds of millions of ‘Mi Fans’, or members of its smart device ecosystem,” said Bill Russo, CEO of Shanghai-based consultancy Automobility.

“As such, they have a great chance of making a breakthrough when the car becomes a smart device.”

The SU7 will come in two versions – a single motor with a driving range of up to 415 miles on a single charge and a dual motor with a range of up to 500 miles. By comparison, Tesla's Model S has a range of 320 to 410 miles.

The Xiaomi SU7 will come in two variants, according to CEO Lei: single motor and dual motor. The latter features a 0-62 mph time of 2.78 seconds

Lee claimed that wind tunnel testing resulted in a highly aerodynamic car, with a drag coefficient of 0.195, meaning it has less air resistance than some of the world's fastest cars.

Power for the five-seat sedan will come from batteries made by one of two Chinese companies, depending on whether the car has a single motor or a dual motor, according to the Indian TOI website. Bloomberg.

Amid one of the coldest Decembers on record for China, SU7 was also positioned to appeal to consumers worried about winter.

Li said it has fast charging capabilities at low temperatures and is equipped with advanced technology, allowing it to recognize obstacles under difficult conditions such as falling snow.

Pricing has not yet been announced, but CEO and co-founder Lei Jun said at the unveiling that it could range between $14,000 and $56,000 – the Model S starts at $74,990

He also said that the self-driving capabilities of Xiaomi's cars will be at the forefront of the industry.

However, Li's ambitions to boost Xiaomi's share price failed, as the company's Hong Kong-listed stock gave up earlier gains to close 0.3% lower.

China's fifth-largest smartphone maker is seeking to diversify beyond its core business into electric vehicles amid stagnant demand for smartphones – a plan it first signaled in 2021. Other Chinese tech companies that have partnered with automakers to develop cars include Electric, telecommunications giant Huawei and the search engine. Baidu company.

Xiaomi has pledged to invest $10 billion in cars over a decade, and is one of the few new players in China's electric car market to win approval from authorities who have been reluctant to add to the glut of supply.

Its cars will be produced by a unit of state-owned BAIC Automotive Group at a factory in Beijing with an annual capacity of 200,000 cars.

In China's very crowded electric vehicle market, its biggest competition is likely to come from BYD, which holds a third share, while Tesla has 9%, according to third-quarter figures from Zheshang Securities.