Exceptionally strong initial orders for Xiaomi's YU7 electric sport utility vehicle sent shares in the automotive newcomer to a record high on Friday and fanned speculation that Tesla may have to cut prices to fight back.

Analysts had been keenly watching the launch, which comes as Chinese EV makers lock into another price war as they seek to win over cautious consumers.

Update: Xiaomi has just announced pricing and range details for the new YU7, with the electric crossover starting at a reasonable RMB 253,500 (around $34,500 at current exchange r

Tesla sales in Europe plunged for a fifth month in a row in May, a blow to investors who had hoped anger toward Elon Musk would have faded by now.

Tesla sales in Europe plunged for a fifth month in a row in May, a blow to investors who had hoped anger toward Elon Musk would have faded by now

Tesla's new car sales in Europe fell 27.9% in May from a year earlier even as fully-electric vehicle sales in the region jumped 27.2%, with the U.S. EV maker's revised Model Y yet to show signs of reviving the brand's fortunes.