Xiaomi has accelerated its work for its first electric car SU7. On March 28, it is preparing to officially introduce it at a press conference in China. Before the big introduction, Xiaomi CEO Lei Jun made important statements about pricing. He also touched on Tesla’s price increases.

Will Xiaomi SU7 be expensive?

Tesla recently announced in a statement that it will go to a price update in various markets. Xiaomi CEO Lei Jun praised Tesla’s hike move in his latest statement. He said he “appreciated” Tesla’s price increase in the electric vehicle market.

Lei Jun analyzed Tesla’s financial situation, noting that the company achieved a profit margin of only 9.2 percent despite producing more than 1.8 million vehicles last year. Drawing attention to the company’s costs, the CEO stated that he considered the price increase of the Model 3 reasonable.

This statement actually overlaps with Lei Jun’s previous statements for the SU7. He had signaled that Xiaomi had always maintained a price/performance balance, but that pricing for the first car could be expensive.

Lei Jun confirmed that since the SU7 is the first model for the company, the initial costs are high. Therefore, he also admitted that there will be some pressure on pricing. Xiaomi President Lu Weibing said the vehicle would be “a little expensive”.

Analysts estimate a price of around 200 thousand yuan (30 thousand dollars) for the Xiaomi SU7. Let us remind you that the first model will be introduced as of next week.