Photo Credit: XiaomiXiaomi, a major Chinese tech firm, has unveiled a new entry-level model that undercuts the price of the popular Tesla Model Y while offering a longer driving range on a full charge.According to Electrek, the company's new entry-level YU7 "Standard Edition" is priced in China at about $32,400 — roughly $4,350 less than the Tesla Model Y — while also claiming a longer driving range.At a launch event, Xiaomi CEO Lei Jun said that the original YU7 pricing, which was just under $1,500 cheaper, was "not competitive enough" against Tesla. AdvertisementAdvertisementNow Xiaomi has widened that gap. The new YU7 Standard Edition now becomes the base trim at around $33,000, while the former base version is repositioned as a Long Range Edition. Electrek noted that the new Standard model delivers an estimated range of 643 kilometers (roughly 400 miles), compared to 593 kilometers (roughly 368 miles) for the rear-wheel-drive Tesla Model Y in China.The new trim uses a rear-wheel-drive single-motor setup rated at 315 horsepower, a CATL battery.Xiaomi also included features that stand out at this price, including air suspension, LiDAR, 4D millimeter-wave radar, and driver-assistance functions with no subscription fee.AdvertisementAdvertisementThe company also revealed a much pricier YU7 GT performance version with 1,003 horsepower and a Nürburgring SUV lap record. However, as Electrek noted, the lower-cost Standard Edition appears to be its biggest attempt to achieve a high sales volume. This is the kind of electric vehicle competition that can pay off for drivers and shoppers. A lower sticker price combined with more range could make electric driving more accessible for drivers who are comparing options.That matters because EVs can already save owners money through lower fuel costs and reduced routine maintenance. Since they do not need oil changes and generally have fewer moving parts than gas-powered vehicles, they can be cheaper to keep on the road.Charging strategy matters, too. Charging an EV at home is significantly cheaper than relying on public chargers. People who use at-home Level 2 chargers, such as those available through Qmerit, can handle most daily driving needs by charging overnight with lower-cost electricity at home.AdvertisementAdvertisementTo learn more about at-home charging, check out the free tools from Qmerit to get quick installation quotes from vetted partners. Installing solar panels can drive those savings even higher, since charging with your own electricity is often cheaper than using public stations or drawing from the grid. If you're interested in solar, the experts at EnergySage can help with useful information and competitive installation quotes. Homeowners who work with EnergySage tools can save up to $10,000 on installation costs. The Standard YU7 launch is also notable because Xiaomi's EV momentum had reportedly cooled after an early surge in orders following the older model's initial announcement. A sharper price advantage over Tesla could help the company regain traction in one of the world's most important EV markets.Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.