Xiaomi introduces its inaugural electric vehicle, the SU7, aiming to rival Porsche and Tesla in China.

The co-founder of Thursday, a billionaire, has announced his aspirations to become a leading global car manufacturer within the next 15 to 20 years, aiming to rival Tesla Inc. and Porsche AG. During a presentation at the China National Convention Center in Beijing, CEO and co-founder Lei Jun unveiled the SU7, also known as the Speed Ultra, which appeared on stage without any visible drivers, captivating the audience of thousands.

Lei spent hours detailing the car’s features, which include a range of up to 800 kilometers (500 miles) on a single charge, adjustable spoilers, unique colors and a top speed of 265 kilometers per hour.

The five-seater sedan is powered by Chinese market leaders Contemporary Amperex Technology Co. Ltd and BYD Co batteries, depending on whether it has a single or dual motor configuration.

Xiaomi’s electric vehicle foray is Lei’s $10 billion bet that his company can shake up the transportation industry the way smartphones did a decade ago. Lei, also a prolific venture capitalist, has called it the ultimate entrepreneurial bet.

“Xiaomi’s goal is to make a dream car that is as good as Porsche and Tesla,” Lei said Thursday at a launch event.

But since he first unveiled his electric car plans in 2021, the regulatory environment and competition in China – the world’s largest car market – have changed significantly.

Beijing has restricted manufacturing licenses for new market entrants, meaning Xiaomi must partner with state-owned Beijing Automotive Group Co to manufacture its electric cars. Government subsidies, which cost consumers up to 60,000 yuan ($8,440) to buy an electric car, ended in 2022. The SU7 is also competing for attention in a market with hundreds of models from dozens of brands.

Lei has previously said that Xiaomi intends the SU7 to rival Porsche’s Taycan Turbo in performance and Tesla’s Model S in terms of specs. The Model S starts at 698,900 yuan and the Taycan at 898,000 yuan, which is much higher than the mid-range price range of 200,000 to 300,000 yuan that many expect the SU7 to fall into.

Xiaomi has yet to say how much the SU7 will cost. Lei hinted that it would not be 99,000 yuan as some on social media had joked. Cars with the same specifications often cost 400,000 yuan or more, he said.

Tesla has sold fewer than 200 Model S cars in China since its facelift this year, while Porsche has delivered about 3,600 Taycan family electric cars to the country in 2023, according to the China Automobile Technology and Research Center.

The SU7 will go on sale next year and will accelerate from 0-100 km/h in 2.78 seconds, Lei said. It comes with an engine that has 21,000 rpm, which he says is higher than the Model S and Taycan Turbo. Xiaomi’s factory uses gigacasting production pioneered by Tesla and is developing a 9,100-ton system it calls hypercasting.

Xiaomi, once known as a maker of low-cost smartphones, has struggled to maintain growth in an increasingly saturated and flat global market. Before the fourth of September, the company had calculated its sales every three-month period from 2021. Now it’s looking to challenge not only other EV makers but newer entrants like Huawei Technologies Co. in an arena where it has shown little unique expertise.

Lei said he drove 150 different cars since he committed to making the SU7.

Xiaomi shares gave up earlier gains and were down 0.3% on Thursday afternoon. On Wednesday, they rose 4.1 percent.

Lei, who has called the SU7 the X’s “performance beast,” has indicated that Xiaomi won’t rely on undercutting rivals to get its vehicle off the ground. The car is aimed at people with a penchant for technology, performance and taste, he said.

He has also paid tribute to competitors on social media, including BYD, XPeng Inc., Li Auto Inc. and Huawei, calling them pioneers in China’s new energy vehicle industry. XPeng CEO He Xiaopeng said in a post on the social media platform Weibo on Wednesday that he welcomed Xiaomi to join the family of automakers and wished the company good sales in 2024.