Xiaomi's Market Entry and Performance - Xiaomi's new $35,000 SUV, the YU7, received over 289,000 pre-orders within an hour, exceeding analyst expectations [1] - Xiaomi's S7 model has sold over 270,000 units in approximately 14 months [3] - Xiaomi, with its integrated digital ecosystem and over 600 million devices carrying its logo, is disrupting the EV market by treating the car as a smart terminal [3][5] - In one year with one model, Xiaomi is outselling Tesla in China [6] Competition and Market Dynamics in China - The new energy vehicle market in China is growing at 40% year-over-year, while Tesla's sales in China are down approximately 8% [12] - The Chinese new energy vehicle market is concentrated, with the top 10 companies generating 80% of sales, and the top 5, including Tesla, generating 60% [15] - BYD, the market leader, accounts for about one-third of all new energy vehicle sales [15] - Xiaomi's main competitors in China are BYD and Huawei, with BYD focusing on hardware scaling and Huawei on integrated hardware and software solutions [9][10][11] Global Expansion and Export Strategy - Approximately one out of every five cars made in China are being sold outside of China [20] - China's car exports reached 59 million units last year and are projected to reach around 65 million units this year, with electric vehicles accounting for about one-third of that number [21][22] - Chinese companies are targeting the emerging world (Global South, Asia, Latin America, Middle East, and Central Asia) and are building factories in regions like Hungary, Turkey, Mexico, and Brazil [20][25][27]