Tesla makes the best-selling EV model, but the upcoming Xiaomi YU7 might leapfrog the Model Y after the SU7 outsold the Model 3 in January in China.https://www.notebookcheck.net/This-Chinese-EV-could-be-the-Tesla-Model-Y-killer.973404.0.html
"impatient buyers could end up settling for the Model 3"
That basically sums up the situation.
And Chinese couldn't care less about Elon's politics, so that paints a clear picture on how Xiaomi's car is so much better.
Tesla basically owns the "premium" EV market in China. And now they are getting some actual competition with a good local name brand.