Tesla has just suffered its worst month in years as Xiaomi YU7 outsells the Model Y for the first time
Published on Nov 12, 2025 at 1:16 PM (UTC+4)
by Molly Davidson
Last updated on Nov 12, 2025 at 1:52 PM (UTC+4)
Edited by
Emma Matthews
Tesla just hit its roughest patch in years, and it’s Xiaomi that delivered the blow.
In October, the tech giant’s new YU7 crossover outsold the Model Y in China for the very first time.
The numbers aren’t close, either – Xiaomi surged while Tesla’s deliveries plunged to a two-year low.
And for the world’s most-watched EV brand, that’s a headline no one saw coming.
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The month Xiaomi finally overtook Tesla
October flipped the leaderboard in China’s EV market.
Xiaomi sold 48,654 cars last month, with the YU7 alone accounting for 33,662 units.
That means it easily cleared Tesla’s combined Model Y and Model 3 total of 26,006.
It wasn’t just a dip, it was the EV brand’s lowest month in years, down 36 percent year-on-year in a market that’s still booming.
The Model Y L – a longer-wheelbase version meant to reignite demand – gave the EV brand one strong month in September.
But by October, the novelty had worn off.
The YU7, meanwhile, kept climbing.
Xiaomi’s first EV, the SU7 sedan, already beat the Model 3 earlier this year.
The YU7 was always going to be next in line, and it’s now cemented Xiaomi as a serious EV rival.
Not just a tech brand playing carmaker.
What Tesla’s worst month really means
The Tesla slowdown in China isn’t a one-off.
Sales have dipped as its current lineup starts to feel familiar, with no all-new model yet on the horizon.
The Cybertruck rollout has been slower than expected, and several long-time vehicle leads have moved on, leaving the S3XY range carrying most of the load.
Meanwhile, brands like Xiaomi are sprinting ahead.
Their EVs are newer, more affordable, and tuned to the tech-driven lifestyles of Chinese buyers.
Tesla still holds huge global influence, but in China – the world’s most competitive EV arena – the balance is shifting… fast.
For the EV brand, October wasn’t a collapse.
But it was a clear reminder that the market it helped build is now catching up.
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Molly Davidson is a Junior Content Writer at Supercar Blondie. Based in Melbourne, she holds a double Bachelor’s degree in Arts/Law from Swinburne University and a Master’s of Writing and Publishing from RMIT. Molly has contributed to a range of magazines and journals, developing a strong interest in lifestyle and car news content. When she’s not writing, she’s spending quality time with her rescue English staffy, Boof.
