Core Viewpoint - Xiaomi is gaining attention in the electric vehicle (EV) market following the launch of its SU7 Series, with notable praise from Ford CEO Jim Farley, positioning the company as a strong competitor in the EV space despite its current minor role in overall financials [1][2][3]. Group 1: Company Overview - Xiaomi launched its SU7 Series in March 2024, marking its entry into the EV market [1]. - The company has reported deliveries of 27,307 vehicles from the SU7 Series and aims to deliver 100,000 vehicles by November 2024, with an updated goal of 120,000 for the year [4][6]. - Farley described Xiaomi as "an industry juggernaut" and emphasized its strength as a consumer brand compared to traditional car manufacturers [3]. Group 2: Financial Performance - In Q2 2024, Xiaomi reported total revenue of 88.9 billion yuan (893 million) [6]. - The gross margin for the EV segment was 15.4%, significantly lower than the 21.1% gross margin for the smartphone and AIoT segment [6][5]. - Despite the excitement around its EV offerings, they currently play a minor role in Xiaomi's overall operations, which are primarily focused on smartphones and AIoT [5]. Group 3: Market Position and Future Outlook - Farley's comments have sparked interest among EV investors, highlighting Xiaomi's successful product launch in contrast to Apple's halted EV project [7]. - While Xiaomi's EV offerings are not yet major contributors to its financial performance, they represent a potential growth area to monitor [7]. - For investors seeking immediate exposure to the Chinese EV market, alternatives like Nio and Li Auto are suggested, while a more conservative approach could involve electric car exchange-traded funds [8].
Why Is Everyone Talking About Xiaomi Stock?