Xiaomi shares surge after new SUV gets 289,000 orders in an hour

Xiaomi Corp.’s shares rose 8% to a lifetime high after the smartphone maker drew strong initial orders for a $35,000 sport utility vehicle intended to compete with Tesla Inc.’s Model Y in China.

The company on Thursday took the wraps off the 253,500 yuan ($35,360) YU7, debuting its second car in a crowded EV market while grappling with scrutiny over its assisted-driving technology. Xiaomi drew a better-than-anticipated 289,000 orders in its first hour of availability.

Xiaomi...