Xiaomi shares hit record highs after the success of new SUV, a Tesla competitor

Xiaomi shares reached their highest price on the Hong Kong Stock Exchange after the Beijing-based smartphone manufacturer sold 200,000 electric vehicles in three minutes.

UNN reports with reference to FT and Bloomberg Linea.

Details

Xiaomi shares soared to a record high after the phone maker sold 200,000 electric SUVs in 3 minutes.

The jump came after Xiaomi, which started as a smartphone maker but has since expanded into other electronics, including electric vehicles, released its YU7 SUV on Thursday.

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Interesting fact: Xiaomi placed 289,000 orders in the first hour of its availability, which was more than expected.

Competition with Tesla

Xiaomi founder Lei Jun directly criticized Tesla during Thursday's presentation, comparing his car to the Model Y.

Just as he previously compared Mi devices to the iPhone.

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What do analysts think?

Citi representative Jeff Chang said that Tesla, which currently ranks fifth in the Chinese EV market, may be forced to lower its own prices in response. And also to stop subscription fees for its so-called full self-driving platform. And furthermore, to extend interest-free credit offered to customers from five to seven years and provide more financial incentives.

However, consumer demand for Xiaomi's YU7 far exceeded analytical expectations.

Goldman Sachs Group Inc. analysts, including Timothy Zhao, noted:

Consumer demand for Xiaomi's YU7 exceeded market expectations. This should allow Xiaomi to further strengthen its leading position in the premium car market in China

Goldman Sachs Group raised its target stock price by 6% to 69 Hong Kong dollars.

Meanwhile, Xiaomi is rushing to consolidate its success

The company started accepting pre-orders on Thursday with a deposit of 5,000 yuan. Xiaomi CEO Lei Jun stated that buyers of Xiaomi's first car – the SU7 sedan – have three days to switch to the SUV if they did not receive the original car.

Recall

UNN reported that the Chinese company Xiaomi officially confirmed the launch of a new electric crossover YU7, which is aimed at the premium SUV market and will directly compete with the Tesla Model Y.

Xiaomi breaks income record thanks to electric car launch27.05.25, 17:39 • 2889 views