From Investing.com: 2024-04-02 03:16:01

Shares of Xiaomi surged 16% after the launch of its electric vehicle, adding $7.6 billion to its market value. The SU7 sedan, priced under $30,000, received 88,898 pre-orders in 24 hours. Analysts predict a net loss of $9,400 per car this year. CEO Lei Jun invests $10 billion in auto business.

Citi analysts warn of potential losses in the competitive Chinese EV market, projecting a net loss of $566.82 million for Xiaomi’s SU7 this year, averaging $9,400 per car based on projected volume. The market will see an influx of 240 EV models in the $27,649.90 to $41,474.85 segment in 2024.

Xiaomi’s entry into the EV market with the SU7 has caused other Chinese brands to cut prices and offer subsidies. With the EV market becoming increasingly competitive, only time will tell who will emerge as winners in the segment. CEO Lei Jun’s $10 billion investment in the auto business signals a major shift for the tech company.



Read more at Investing.com: China Xiaomi’s EV launch propels its market value by $7.6 billion, above GM and Ford By Reuters