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.

Xiaomi launches the YU7 SUV, its second electric vehicle with high-performance powertrains across three variants.

Xiaomi's YU7 electric SUV has garnered around 240,000 orders in 18 hours, boosting the company's stock to a record high. Priced lower than Tesla's Model Y, the YU7 boasts a 96.3 kWh battery and extensive features,