Xiaomi, the renowned Chinese smartphone manufacturer, made a significant stride into the automotive industry with the launch of its first electric vehicle, the SU7. Amid a ceremony in Beijing celebrating the commencement of deliveries, Xiaomi’s CEO and founder Lei Jun expressed his enthusiasm, stating, “Xiaomi’s car officially debuts, the real revolution in smart cars has officially begun, and China will surely give birth to a great company like Tesla.”
The initial deliveries of the SU7, from a limited batch of 5,000 cars known as the “Founder’s Edition,” have already received more than 100,000 orders, highlighting the strong demand for Xiaomi’s entry into the electric vehicle market. Despite the surge in interest, Xiaomi cautioned buyers about potential wait times of four to seven months for their vehicles.
Following the launch, Xiaomi’s shares experienced a notable surge, rising by as much as 16% on Tuesday. However, a brokerage firm estimated that the company could incur losses of nearly $10,000 per car this year. Despite this, Xiaomi’s market valuation reached $55 billion at its peak, surpassing that of traditional U.S. automakers General Motors and Ford.
The SU7, with a starting price tag of under $30,000 for the base model, presents a compelling option in the competitive Chinese electric vehicle market. Analysts have noted that Xiaomi’s expertise in smartphones could give it an advantage in the smart dashboard segment, which is highly valued by Chinese consumers.
Xiaomi, which generates the majority of its $37.5 billion revenue from smartphone sales, announced its entry into the electric vehicle market in 2021, with Lei pledging a $10 billion investment in the auto business as “the last major entrepreneurship project” of his life.
