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Xiaomi’s big bet on EVs—spending ten times more money than what carmakers usually commit to a new model—may be working out. The Chinese tech giant released its first car, the SU7 electric sedan, on the market last Thursday, notching up 120,000 orders in just 36 hours.
The company’s shares surged by as much as 16% in Hong Kong trading on Tuesday, the first day of trading since the EV’s launch. The company later pared gains back to a 9% increase by market close, with the broader Hang Seng Index up 2.4% over the same period.
But Xiaomi, a first-time carmaker, may struggle to meet demand. The company is advising potential buyers that they could face a wait time of four to seven months before receiving their vehicle.
There are three versions of the SU7, the standard model of which is priced at 215,900 yuan ($29,842). Higher-end Pro and Max models cost 245,900 yuan ($33,989) and 299,900 yuan ($41,453) respectively.
On Thursday, Xiaomi founder Lei Jun claimed that SU7 beats the Tesla Model 3 on 90% of specifications. The company’s website claims that the Xiaomi car has a range of up to 700 kilometers, compared to the Model 3’s 606 kilometers. The SU7 is also cheaper than the Model 3’s 245,900 yuan ($33,989) price tag.
Xiaomi is the world’s fourth-largest smartphone seller, yet the company has also moved into making smart TVs and home appliances like vacuum cleaners, microwave ovens, and air fryers. Lei characterized Xiaomi’s EV project as his “last major entrepreneurship project” in 2021.
In a Weibo post on Monday, Lei said the SU7 was the result of “three years of hard work” and canvassed users for feedback on the new car.
Lei admitted last week that Xiaomi is currently selling its new car at a loss, but said the company has enough cash reserves to cope with fierce competition in the Chinese EV sector over the next five years. Automakers in China are engaging in another round of price wars as there are signs of a slowing pace of growth in the world’s largest EV market.
