Chinese smartphone giant Xiaomi's electric car, the SU7, is performing well, securing over 70,000 orders despite pricing below Tesla's Model 3. Xiaomi initially expected to sell each car at a loss, but now estimates a 5-10% profit margin. The company's long-term goal is to become a top-five automaker, with plans for an SUV model in 2025.
Xiaomi's SU7 electric car has sparked excitement in China, with its low price and long range challenging Tesla's Model 3. Xiaomi's shares surged upon its launch, and wait times for the SU7 are now five months. Other Chinese EV makers like Xpeng, Nio, and Li Auto have recently cut delivery forecasts, while BYD remains the industry leader. The growing competition and slowing new energy vehicle growth indicate a highly competitive Chinese electric car market.
Xiaomi is releasing its debut electric car, the SU7, priced lower than Tesla's Model 3, at 30,408 USD. Xiaomi claims the SU7 outperforms the Model 3 in most aspects. Despite selling at a loss, Xiaomi hopes its SU7 will compete with the Model 3 and expand its ecosystem of connected devices.
