Xiaomi, a renowned Chinese smartphone manufacturer, made a significant announcement on Wednesday regarding its entry into the electric vehicle market.
The company revealed that it has received an impressive 100,000 orders for its first electric car, the SU7, as it commenced deliveries.
During a special ceremony held in Beijing to mark the beginning of the deliveries, Xiaomi’s CEO and founder, Lei Jun, expressed his enthusiasm by stating, “Xiaomi’s car has officially debuted, marking the start of a genuine revolution in smart cars. China is bound to produce a remarkable company akin to Tesla.”
The initial deliveries are part of a limited batch of 5,000 cars, known as the “Founder’s Edition.” These special edition vehicles come equipped with additional accessories, specifically tailored for the early purchasers, enhancing the overall driving experience.
Following the launch of the SU7, which stands for Speed Ultra 7, Xiaomi has advised potential buyers that they could face wait times of four to seven months due to the robust demand and popularity of the vehicle.
This overwhelming response underscores the strong interest and high expectations consumers have for Xiaomi’s new electric car.
Despite the initial excitement and surge in Xiaomi’s shares by as much as 16% on Tuesday, the stock experienced a decline of more than 3% on Wednesday morning.
Nevertheless, at its peak, Xiaomi’s valuation reached an impressive $55 billion, surpassing the valuations of traditional U.S. automakers such as General Motors and Ford.
Priced competitively at under $30,000 for the base model, the SU7 is entering a highly competitive electric vehicle market in China. Analysts believe that Xiaomi’s substantial financial resources and its expertise in smartphones will give the company a competitive edge, particularly in the development of smart dashboards, a feature highly valued by Chinese consumers.
It is worth noting that Xiaomi generates the majority of its $37.5 billion revenue from selling smartphones. Lei Jun, who announced Xiaomi’s ambitious entry into the electric vehicle market in 2021, has committed to investing $10 billion in the auto business.
He views this venture as the “last major entrepreneurship project” of his life, underscoring the company’s long-term commitment and strategic focus on the electric vehicle industry.
Xiaomi’s entry into the electric vehicle market with the launch of the SU7 represents a significant milestone for the company and the industry.
With strong consumer interest, innovative features, and substantial investment, Xiaomi is poised to challenge and disrupt the traditional automotive market, aiming to establish itself as a major player in the rapidly evolving electric vehicle landscape.
