In an impressive market performance, shares of Xiaomi (HKSE:01810, Financial), a renowned Chinese electronics company, experienced a surge of up to 16% on Tuesday. This spike came in the wake of the company's recent unveiling of its first electric vehicle, a sporty model drawing comparisons to Porsche's Taycan and Panamera. The vehicle's introduction has evidently sparked investor enthusiasm, propelling Xiaomi's stock to its highest point since January 2022.
The excitement surrounding Xiaomi's new venture was palpable as trading resumed after the Easter holiday, marking the first trading session since the electric vehicle's launch. The company's entry into the automotive market seems to have been warmly received by the market.
Xiaomi announced the pricing for its electric vehicle lineup last Thursday, with the standard SU7 model starting at 215,900 yuan ($29,870). The more advanced Pro and Max variants are priced at 245,900 yuan and 299,900 yuan, respectively, indicating a tiered approach to cater to different segments of the market.
The company's leap into the electric vehicle sector is the fruition of a vision shared by Xiaomi's founder, Lei Jun. In 2021, Lei Jun declared the company's ambitious plans to venture into electric vehicles, committing an investment of $10 billion over the next decade. This move is described as his "last major entrepreneurship project," signaling the importance of this venture for Xiaomi.
Xiaomi has informed prospective customers of the SU7 electric sedan about potential wait times spanning four to seven months, suggesting a robust demand for the vehicle. To further entice buyers, Xiaomi has also released a "Founder's Edition" of the car, accompanied by exclusive gifts like refrigerators, with the first 5,000 units selling out instantly.
