Jefferies analyst Edison Lee says Xiaomi's ( XIACY ) new electric SUV "seems to be selling like hot cakes" despite slightly higher pricing than the firm expected. YU7 demand is "certainly stronger than expected," the analyst tells investors in a research note. YU7's pricing is slightly below that of Tesla's ( TSLA ) Model Y but offers much better specs and performance, contends Jefferies. The firm believes the Model Y is the main target of YU7, and thus it expects the new SUV will be able to take market share from the Model Y. The firm points out 480,000 Model Ys were sold in China last year. Jefferies has a Buy rating on Xiaomi with an HK$73 price target.