Shares of Xiaomi rose after the Chinese electronics giant's electric vehicle unit received more than 200,000 orders for its second model within three minutes of the car starting pre-sales.

Xiaomi [HKG: 1810] jumped 2.6 percent to HKD59.45 (USD7.57) a share as of lunch break in Hong Kong today.

Pre-orders for the YU7, a pure electric five-seat sport utility vehicle, topped 289,000 in the first hour after launching yesterday, Xiaomi Auto said after a launch event late on the same day. The downpayment is CNY5,000 (USD700).

The YU7 is priced between CNY253,500 and CNY329,900 (USD35,365 and USD46,025) and comes in three versions, Xiaomi Auto noted.

Based on its price, the YU7's main competitors are Tesla's Model Y, Xpeng Motors' G9, and Nio's ES6, with extended-range models from Li Auto, Seres Auto's Aito brand, and SAIC Motor's IM Motors marque also within the same price range.

While the YU7 may divert potential buyers from Xiaomi's first model, the SU7, the Beijing-based company's sales will likely continue to grow, according to industry insiders.

Xiaomi's auto business-related losses are narrowing, with the segment expected to become profitable in the third or fourth quarter of this year, Chief Executive Lei Jun said earlier this month.

Despite logging a loss of CNY500 million (USD69.8 million) in the three months ended March 31, Xiaomi's smart EV division gross profit margin rose to 23.2 percent from 12.6 percent, according to its financial report. Revenue jumped 10.7 percent to CNY18.1 billion (USD2.5 billion).