Tesla Y Model vs  Xiaomi’s YU7 SUV: Tesla Gets CRUSHED By This Smartphone Giant’s First SUV, Sells Double As Elon Musk ‘s Brand—Check Details

January 2026 surprised everyone regarding the China’s car market. from a long time Tesla’s Model Y had been one of the best-selling electric cars in the world. It had even topped China’s electric vehicle rankings as recently as December 2025. But in the first month of 2026, that changed in a big way. The Xiaomi YU7 SUV, a newcomer from the China’s EV market saw a shake-up in January 2026 as Xiaomi’s YU7 SUV outsold Tesla’s Model Y, becoming the country’s top-selling vehicle and signaling rising competition from local brands.
Chinese tech brand better known for phones, beat Tesla’s Model Y in sales in China.

The latest data from the China Passenger Car Association and local car sales rankings showed that Xiaomi sold 37,869 YU7 SUVs in January. That was more than double the 16,845 Model Y vehicles Tesla sold in the same period. This made the YU7 the overall top-selling vehicle in China for the month — not just among EVs, but among all cars.

For Tesla, it was a sudden and tough moment. In December, the Model Y had been number one. But by January, it had slipped to 20th place in total sales and fell even further within the new energy vehicle ranking. Xiaomi’s surge pushed Tesla down and showed how fast China’s own EV makers are rising.

Xiaomi’s journey into EV sector has been rapid. they started selling its first sedan, the SU7 back in March 2024 and later introduced the YU7 SUV in mid-2025. The YU7 competes directly with Tesla’s Model Y and was priced about 10,000 yuan (around $1,450) lower, a strategy that helped attract buyers. Xiaomi said its SUV also offered strong range and features at that price.

Inside Xiaomi, people celebrated the achievement. Company representatives said the YU7’s strong sales momentum was a sign that their electric car business was gaining real footing in China. They thanked customers for their support and noted that demand had stayed strong even after the first big sales bump.

For Tesla and its fans, this shift is a challenge. Elon Musk’s company still sells a lot of vehicles worldwide, and the Model Y remains one of the best-selling EVs globally. But in China — the world’s largest car market — local brands like Xiaomi are now eating into Tesla’s lead. As competition heats up, the story of EV sales in China is changing fast, and traditional leaders are being pushed by unexpected rivals.

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