Xiaomi’s stocks soars after launching 1st EV

Xiaomi’s stock surged 16 per cent on Tuesday after the launch of its new electric vehicle, despite forecasts of significant losses per car this year, according to Reuters on Tuesday.

The company’s market value increased by $7.6 billion, surpassing that of General Motors and Ford. The SU7 model, priced under $30,000, competes in a crowded Chinese EV market.

Xiaomi’s expertise in smartphones gives it an advantage in smart dashboards. The company has received strong interest with 88,898 pre-orders in the first 24 hours.

Xiaomi expects to lose money on the SU7, with projected losses of $566.82 million this year.

The launch fulfills CEO Lei Jun’s ambition to enter the EV market. Other Chinese EV brands have responded with price cuts and subsidies. The segment is expected to see increased competition with 240 EV models by 2024.