Big increase in shares

Xiaomi shares soar after e-car debut

On the stock market, Xiaomi has already outperformed traditional car manufacturers such as GM and Ford.

(Bild: Xiaomi)

The market launch of its SU7 electric car is driving up the shares of Chinese electronics manufacturer Xiaomi. The share price rose by up to 16 percent on Tuesday, although the industry newcomer's first e-car will be a loss-making business for the company. Xiaomi increased its stock market value by 7.6 billion dollars to 55 billion dollars (51 billion euros) on the first day of trading after the car was unveiled last week, outperforming traditional car manufacturers such as General Motors and Ford.

The Chinese company generates the majority of its turnover of 37.5 billion dollars from the sale of smartphones. Analysts believe that Xiaomi will succeed in the highly competitive e-car market in China with its sporty "Speed Ultra 7" model. The company can afford a deficit estimated at just under 10,000 euros per car and can score points with its smartphone expertise in the digital equipment of the vehicles. According to the company, almost 89,000 pre-orders were received in the first 24 hours for the car, which is cheaper than Tesla's Model 3 with a starting price of less than 30,000 dollars. Customers will have to wait up to seven months for their new vehicle.

Xiaomi founder Lei Jun is pursuing the "last big entrepreneurial project" of his life with his entry into car production. Following the market launch of the SU7, other Chinese e-car brands with comparable models announced price cuts. In 2024, around 240 e-models in the segment between 200,000 and 300,000 yuan (25,000 to 39,000 euros) will be vying for the favor of customers in China, which corresponds to an increase of almost a fifth compared to the previous year, as Citi analysts explained.