Xiaomi begins delivery of first batch of over 100,000 EVs ordered

Xiaomi begins delivery of first batch of over 100,000 EVs ordered

By Sarah Wu

Beijing (Reuters) – Chinese smartphone maker Xiaomi said on Wednesday it had received more than 100,000 orders for its first car – a sporty electric vehicle called SU7 – as it began deliveries.

“Xiaomi’s car officially debuts, the real smart car revolution has officially begun, and China will surely give birth to a big company like Tesla,” CEO and founder Lei Jun said at a ceremony in Beijing marking the first deliveries.

The first deliveries come from a limited batch of 5,000 cars that Xiaomi had already produced – called the “Founder’s Edition”, equipped with additional accessories for early buyers.

Following last week’s launch of the SU7 – short for Speed ​​Ultra 7 – Xiaomi informed buyers of its sedan that they could face wait times of four to seven months, a sign of robust demand.

Shares of Xiaomi jumped 16% on Tuesday as the SU7 attracted strong interest, even though one brokerage predicted the company would lose nearly $10,000 per car this year. Its shares were down more than 3% on Wednesday morning, compared with a 1.1% decline in the broader Hang Seng Index.

At Tuesday’s high, the company had a valuation of $55 billion at a stock price of HK$17.34, more than that of traditional U.S. automakers General Motors and Ford, at $52 billion and $53 billion, respectively. of dollars.

Xiaomi’s SU7 enters a crowded Chinese electric vehicle market with an eye-catching price: less than $30,000 for the base model, cheaper than Tesla’s Model 3 in China.

As the world’s largest auto market poses a challenge for new entrants due to a fierce electric vehicle price war and slowing demand, analysts said Xiaomi has deeper pockets than most electric vehicle startups and that its smartphone expertise gave it an edge in smart dashboards – a feature prized by Chinese consumers.

The company derives the majority of its $37.5 billion in revenue from smartphone sales.

The SU7 launch fulfills the ambition of Lei, who announced the company’s foray into electric vehicles in 2021, pledging to invest $10 billion in the automotive sector as “the last big entrepreneurial project” of his life.

(Reporting by Sarah Wu; editing by Christopher Cushing and Stephen Coates)

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