Tesla Model Y is priced at 263,500 yuan in China, and with the recent launch of Xiaomi YU7, the American EV maker is likely to witness a dip in its market share.

Xiaomis new YU7 electric SUV is off to a flyer with the company receiving 2.89 lakh orders within the first hour of the vehicle prices being announced. Shares of the company went record high leading to

Chinese EV and smartphone maker Xiaomi on Thursday priced its new electric YU7 SUV from 253,500 yuan ($35,364), almost 4% below Tesla's Model Y, stepping up the challenge to the U.S. firm in the world's largest auto market.