Tesla has new competition with a Chinese EV priced lower than Model 3

Tesla is getting some more EV competition in China.

It is coming from Xiaomi, a Chinese consumer electronics company that officially introduced its electric SU7 sedan during a Thursday event involving co-founder Lei Jun, Barron’s reported.

The cheapest model of the SU7 has a price tag that equates to roughly $30,000, according to the outlet.

Xiaomi is reportedly working with Beijing Automotive Group Co. on its manufacturing.

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The vehicle is expected to vie with the Model 3, a Tesla sedan that carries a starting price approximately $4,000 higher in China, per Barron’s.

The $34,000-priced SU7 model can go 700 kilometers (435 miles) on a single charge, according to Barron’s. Meanwhile, the Model 3 reportedly goes 610 kilometers (379 miles).

Tesla has a major presence in the crowded Chinese EV market, where many companies have been reducing their prices to stay competitive with each other.

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Customer orders for the SU7 started Thursday, notching 50,000 in less than half an hour, the company said on Chinese social media platform Weibo. There are three models of the SU7 in all.

Prior to the SU7, the company that makes popular smartphones had never sold an EV. Over 4,400 engineers and technical experts, as well as 10 billion yuan (approx. $1.38 billion) worth of research and development, helped bring the SU7 to fruition, Xaiomi said in a press release in February.

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Xaomi was worth over $47 billion on a market capitalization basis as of Friday.

Its performance over the years has helped make Jun and other Xiaomi co-founders billionaires. Forbes pegged Jun’s personal fortune at $12.4 billion.