Tesla took 10 years to turn a profit and Xiaomi did it in two as YU7 beat Model Y sales

Xiaomi started selling its first electric car less than two years ago but has already generated nearly $100 million net income out of its EV business last quarter. For comparison, Tesla registered its first quarterly profit after ten years in existence, and its October sales in China slumped to a 3-year low as Xiaomi, BYD, and others, encroach on its market share.

The profitable Xiaomi Auto quarter rode high on the popularity of its first electric SUV, the YU7. Its record sales toppled the Tesla Model Y off its perch for the first time. In total, "108,796 new cars were delivered in the quarter, with the Xiaomi YU7 ranking first in domestic SUV sales in October," tips the newcomer.

Its EV business generated more than $4 billion in sales, meaning that the smart electric cars department returned slightly lower margins than the previous quarter as Xiaomi expanded its manufacturing base to meet demand, and invested more in R&D.

The Xiaomi YU7 is priced lower than Tesla's Model Y, despite offering longer range on a charge and coming with superior technology like an 800V powertrain or faster charging. Xiaomi pursues the same value-for-money strategy with its cars as it does with its consumer electronics, like the triple-driver Redmi Buds 6 Pro that can now be had for less than $80 on Amazon.

The YU7 sports a 96.3 kWh LFP battery for the Standard RWD and the Pro AWD trims, and a 101.7 kWh unit in the performance YU7 Max variant, which explains why it beats the Model Y in terms of range. In fact, the YU7 offers the largest battery in its $35,000 electric crossover category.

The first Xiaomi SUV is larger than the Model Y as well, and comes with air suspension as standard for added comfort. Xiaomi also replaced the gauge cluster displays with a nifty HUD projection across the driver's entire field of view. The SUV is available in nine exterior and four interior color combos, while its massage seats are upholstered with Nappa leather, and the rear bench can recline to form a bed.

Xiaomi keeps adding production capacity for its YU7 SUV and the SU7 sedan, which lowered delivery times for the SU7 dramatically, from 30 weeks to six or nine weeks, depending on the trim.