Xiaomi enters electric cars like it did smartphones 13 years ago

With what's going on, Xiaomi is trying to replicate the success it achieved in the smartphone industry 13 years ago, and this has helped the company's stock hit a new record high.

Xiaomi’s stock has more than doubled this year, outpacing global rivals thanks to a surge in electric vehicle market share in China, where it competes with the likes of BYD and Tesla. Xiaomi’s stock is expected to rise further after the launch of its YU7 electric crossover next summer.

Xiaomi YU7 will help Xiaomi gain a further foothold in the electric vehicle sector

Promising sales for Xiaomi electric vehicles

Investors are hoping for similar growth to when Xiaomi launched its first smartphone in 2011, when it quickly became a competitor to Apple and Samsung. Xiaomi’s Hong Kong-listed shares are still about 10% below their 2021 peak.

Xiaomi’s growth comes amid macroeconomic uncertainty in China and globally, especially as shares of EV startups like Nio and Li Auto have fallen on concerns about product demand. In the third quarter of 2024, Xiaomi reported stronger-than-expected sales growth, with revenue from EV manufacturing accounting for about 10% of the company’s total revenue.

Bloomberg also notes that Xiaomi is rapidly gaining momentum by capitalizing on marketing opportunities and the popularity of its smartphones among young people. The company expects to sell 130,000 SU7 sedans this year, double its initial forecast. Analysts predict that with the launch of the YU7 crossover, Xiaomi’s total EV sales in 2025 will more than double from 2024.

Analyst Steven Tseng from “Xiaomi’s electric vehicle business could overtake smartphones as the company’s main driver by 2025,” Bloomberg said. He believes the next model could boost Xiaomi’s electric vehicle sales by 137% by 2025, thanks to consumer preference for larger vehicles and the expansion of capacity at its second electric vehicle plant.

Investment firm Macquarie Group also believes Xiaomi could strengthen its position in the electric vehicle market with the launch of the YU7 crossover, which is expected to cost between $34,000 and $45,000.

Source: https://thanhnien.vn/xiaomi-tham-gia-xe-dien-nhu-voi-smartphone-13-nam-truoc-185241213222420535.htm