Xiaomi market value soars by up to $7.6bn on EV launch

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Following the SU7 launch, other Chinese EV brands with comparable models announced price cuts

BEIJING/HONG KONG – Shares of China's Xiaomi surged as much as 16 per cent on Tuesday as the electronics maker's sporty electric vehicle launched last week drew strong interest, though a brokerage forecast the firm would lose nearly $10,000 per car this year.

Xiaomi's SU7 – short for Speed Ultra 7 – enters a crowded China EV market with an attention-grabbing price tag – under $30,000 for the base model, cheaper than Tesla's Model 3 in China. But Xiaomi has said it expects to lose money on the SU7, and some analysts predict the loss would be substantial. Based on a projected volume of 60,000 units this year, Citi estimates the SU7 could generate a net loss of 4.1 billion yuan - on average, 68,000 yuan per car.

 

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