The Luxeed R7 is the first coupe SUV under Huawei's HIMA business and the second model under the Luxeed brand. Deliveries of the model will begin next month.

Luxeed, a new brand jointly created by Huawei and Chinese automaker Chery, has rolled out a new all-electric model that is yet another Tesla (NASDAQ: TSLA) Model Y challenger.

The Chinese tech giant launched the Luxeed R7 at its fall product launch today, the second model under the Luxeed brand after the Luxeed S7 sedan, and the first coupe SUV (sport-utility vehicle) under its HIMA (Harmony Intelligent Mobility Alliance) business.

The Luxeed R7 targets the mid-size SUV market where the Tesla Model Y is located and tries to win customers with similar pricing and better driver assistance software.

The R in the model comes from Revolution, which stands for breakthrough and disruption, according to Huawei.

The Luxeed R7 is offered in four variants -- one Pro, two Max and one Ultra -- with starting prices of RMB 259,800 ($36,940), RMB 299,800, RMB 319,800 and RMB 339,800, respectively.

Volume deliveries of the Max and Ultra variants will begin on October 15, and volume deliveries of the Pro version will open on November 15.

The Model Y currently available in China offers three variants with starting prices of RMB 249,900, RMB 290,900 and RMB 354,900 respectively.

Pre-orders for the Luxeed R7 began on September 10, and Huawei said today that the model received over 30,000 pre-orders in less than two weeks.

Despite being priced slightly higher than the Tesla Model Y, the Luxeed R7 will still bring in losses.

At least for this year, selling the Luxeed R7 is money-losing, bringing in a loss of around RMB 30,000 per unit, Huawei's managing director and chairman of the smart car solutions business unit Richard Yu said today, adding that he expects the model to start bringing in profits once deliveries ramp up.

Built on Huawei's Giant Whale 800 V high-voltage platform, the Luxeed R7 measures 4,956 mm in length, 1,981 mm in width and 1,634 mm in height, with a wheelbase of 2,950 mm.

It comes with dual motors only in the highest priced Ultra variant, while all other variants are single-motor models.

The model can accelerate from 0 to 100 kilometers per hour in 5.9 seconds for the single-motor rear-wheel-drive variant and 3.9 seconds for the dual-motor four-wheel-drive version.

It offers two battery pack options with capacities of 82 kWh and 100 kWh, capable of delivering a CLTC range of 667-802 kilometers.

The Luxeed R7 uses Huawei's Tuling Intelligent Chassis with smart road recognition system.

It will be equipped with Huawei's Qiankun ADS 3.0 driver assistance system, which incorporates end-to-end AI (Artificial Intelligence) technology so as to provide an assisted driving experience closer to that of a human driver.

The system supports advanced intelligent driving capabilities including valet parking and summoning.

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($1 = RMB 7.0329)