Xiaomi's 'stunning' new YU7 is the latest threat to Tesla in China

The YU7 is Xiaomi's second car.

Xiaomi

• Chinese smartphone maker Xiaomi just unveiled its second EV, the YU7.
• Morgan Stanley analysts predicted that the electric SUV would be another threat to Tesla in China.
• Tesla's sales have struggled in China amid fierce local competition.

One of Tesla's biggest Chinese rivals just unveiled a new EV — and it could be a major headache for Elon Musk.

Smartphone maker Xiaomi showed off the YU7 at an event in Beijing on Thursday...