Xiaomi launches SkyNomad EREV SUVs from $38,410, undercutting Tesla

Xiaomi's first extended-range SUVs undercut Tesla's Model Y L by 23 percent in China, opening preorders at 259,900 yuan.

Xiaomi's SkyNomad N70 Max, priced at 259,900 yuan ($38,410), undercuts the comparable Tesla Model Y L by 23 percent as the smartphone maker pushes into China's family SUV market with its first extended-range electric vehicles.

"Six seats are not enough for families... If we compare a vehicle to a house, we can freely arrange our space and decorate," Xiaomi Chief Executive Lei Jun said at the launch event.

The N90 Max, a seven-seat flagship, combines a 76-kilowatt-hour CALB ternary battery with a 1.5-liter turbocharged range extender and a 60-liter fuel tank for a combined range of up to 1,705 kilometers (1,059 miles). The smaller N70 Max offers up to 505 kilometers of pure electric range on the CLTC standard, with a 50-kWh Sunwoda LFP pack available as an option. Both models ride on Xiaomi's new Kunlun architecture, which features a flat floor and six seat rails that let the second and third rows slide fore and aft.

Xiaomi shares fell 8.7 percent on the launch day, with short interest at 36 percent of turnover, as Nomura maintained a Neutral rating with a target price of HK$33. The company, which delivered only about a third of its annual EV target in the first half, is betting the SkyNomad line can revive momentum before a planned European launch next year.

Kunlun Platform Targets the Family Segment

The SkyNomad series marks Xiaomi's first step beyond battery-electric vehicles into extended-range electric vehicles, or EREVs, which use a gasoline engine as an onboard generator to recharge the battery. The 1,499cc range extender, supplied by Dongan, produces 112 kilowatts and burns as little as 5.7 liters per 100 kilometers after the battery depletes, with service intervals stretched to three years or 30,000 kilometers. Xiaomi said 15 minutes of charging adds 285 kilometers of range.

The N90 Max measures 5,285 millimeters in length with a 3,080-millimeter wheelbase, while the N70 Max spans 4,960 millimeters. Xiaomi cited 626 days of road testing, 566 test vehicles and 4.28 million kilometers of cumulative mileage to support its durability claims.

Price War Intensifies

The launch deepens a price war in China's crowded EV market, where Li Auto's Li L6, the N70 Max's closest rival, debuted at 249,800 yuan ($36,900). Tesla's Model Y L sells for 339,000 yuan ($50,100) in China, giving Xiaomi a 23 percent price advantage on the comparable model.

Xiaomi, which also makes smartphones and home appliances, has positioned SkyNomad as an "intelligent, reconfigurable, large-space SUV," contrasting it with the SU7 sedan and YU7 SUV series that focus on driving dynamics. The company's EV business has become an increasingly important revenue source over the past two years, and the SkyNomad line is central to its push into the family SUV segment.

Xiaomi shares, which fell 8.7 percent to trade at a short-selling ratio of 36 percent, face pressure from margin concerns as the company enters the lower-margin EREV segment. Nomura's Neutral rating with a HK$33 target suggests limited upside, while the September delivery date will test whether the price advantage can convert into volume. The company's first-half EV deliveries reached only about a third of its annual target, raising the stakes for the SkyNomad launch to meet full-year goals.

This article is for informational purposes only and does not constitute investment advice.