SU7 Sends Xiaomi Stocks Soaring

According to Bloomberg, in China, the Xiaomi SU7 has the opportunity to become as popular an electric car as the Tesla Model 3. Representatives of Goldman Sachs expect the new product to attract 100,000 orders this year, while experts at Citigroup estimate that between 55,000 and 70,000 cars will be sold in the first year on the market. Although the BAIC factory in Beijing, where the SU7 is assembled, has the capacity to produce 200,000 electric cars a year, it is unclear how the production scale can be expanded.

Xiaomi SU7 is getting a lot of attention in China

REUTERS

The Xiaomi SU7 electric car is currently taking orders and will take about 5-6 months to deliver. However, investors are still very optimistic about Xiaomi's electric car business prospects. This has been shown by the company's stock price in Hong Kong rising 16%, forcing competitors to try to attract customers with new measures.

Estimates show that China's electric and hybrid vehicle market will grow just 20% this year instead of 36% last year and much lower than 96% in 2022. Shares of the world's largest electric vehicle maker BYD rose 2.9% in Hong Kong trading after the company said it expected to increase vehicle production by 20% by the end of this year.

Other leading Chinese premium EV makers, Li Auto, NIO and Xpeng, all shipped large numbers of EVs to customers in March 2024, but the numbers were lower than initial estimates. As for BYD, the Chinese company saw consecutive increases in the first three months of the year, partly due to its policy of reducing EV prices by 5% to 20%.

Electric vehicle sales figures in China will give investors a better view of their investments, and the appeal of the Xiaomi SU7 in the early stages makes them feel more secure.