# Xiaomi’s Remarkable Surge in EV Market Elevates Shares to Near Record Highs

- Link: https://www.thailand-business-news.com/china/180755-xiaomis-remarkable-surge-in-ev-market-elevates-shares-to-near-record-highs
- Published: 2024-12-17T10:35:00+07:00
- Author: Li Zhong

**Xiaomi’s stock nears a peak, doubling this year, driven by its rapid rise in China’s
EV market. Analysts predict significant growth, with EVs potentially surpassing 
smartphones as its main driver.**

## Key Takeaways

 * Xiaomi’s rapid success in the EV market mirrors its meteoric rise in the smartphone
   industry, positioning it as a significant challenger to established leaders like
   BYD and Tesla.
 * Leveraging its expertise in the smartphone sector, Xiaomi has managed to optimize
   production and keep costs under control, giving it a competitive advantage in
   the crowded EV market.
 * Despite potential challenges like valuation concerns and geopolitical risks, 
   analysts remain optimistic about Xiaomi’s profitability, innovative edge, and
   strong foothold in the EV market, marking the beginning of an even bigger growth
   story for the company.

## Abstract

Xiaomi Corp., known for its success in the smartphone industry, is now making waves
in the electric vehicle (EV) market. The company’s stock has surged by 103% this
year, driven by its impressive entry into China’s competitive EV sector. Xiaomi’s
first EV, the SU7 sedan, has gained popularity and contributed significantly to 
its revenue. With plans for an upcoming electric SUV launch and ambitious delivery
forecasts, Xiaomi’s success in the EV market mirrors its rapid rise in the smartphone
industry. Despite challenges such as valuation concerns and potential geopolitical
risks, analysts are optimistic about Xiaomi’s future in the EV market, citing its
profitability, innovation, and strong foothold.

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## Xiaomi’s Stock Surge in the EV Market

Xiaomi Corp. is swiftly nearing a historic peak in its share price, having skillfully
penetrated the electric vehicle market, akin to its earlier triumphs in the smartphone
industry. On Friday, the company’s Hong Kong-listed stock climbed by 0.16% to 31.65
HKD, marking a 100% increase this year. This surge outpaces global counterparts,
with Xiaomi challenging rivals such as BYD Co. and Tesla Inc. The trajectory recalls
Xiaomi’s 2011 smartphone debut, which saw it rival heavyweights like Apple and Samsung.

Xiaomi’s rapid success in the EV market mirrors its rise in the smartphone industry.
The SU7 sedan, launched recently, has gained popularity, contributing 10% to the
company’s revenue in the September quarter, appealing to younger, tech-savvy consumers
with its smart driving features and connected entertainment system.

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## Future Prospects and Market Expansion

Despite skepticism regarding Xiaomi’s $10 billion EV investment, the company outperformed
global auto and smartphone indices. This was achieved amidst uncertain market recovery
forecasts, attributed to unexpected sales growth in the third quarter, with EVs 
comprising 10% of revenue. Analysts forecast Xiaomi’s total sales to double by 2025
with the launch of the YU7 SUV. The EV sector could potentially surpass smartphones
as the primary growth driver, leveraging Xiaomi’s youthful appeal and marketing 
expertise.