- ORIGINAL NEWS
Xiaomi shares pop 16% after the Chinese smartphone maker launches its first EV
- SUMMARY
Xiaomi’s entry into the Chinese electric vehicle market has shaken the industry.
To compete with market leader Tesla, Xiaomi has priced its new SU7 model about $4,000 lower than the Model 3, while boasting longer driving range.
This move underscores the fierce competition in China’s electric car market.
In response, established players like Xpeng and Nio have implemented purchase subsidies, highlighting the slowdown in new energy vehicle growth.
Despite the challenges, Huawei’s new energy car brand, Aito, performed well in March, while industry giant BYD maintained its dominance.
Further illustrating the competitive landscape, Li Auto and Nio recently lowered their first quarter delivery targets.
Despite an increase from February, Li Auto’s March deliveries fell short of expectations, prompting them to reduce their quarterly estimate significantly.
Nio also slightly adjusted its outlook, and Xpeng delivered even fewer cars in March.
The challenges faced by established electric car makers emphasize the growing intensity of competition in the Chinese market.
Xiaomi’s aggressive pricing and claims of improved performance pose a serious threat to rivals as they strive to maintain their market share and drive growth in the face of slowing demand.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Shares of Chinese smartphone maker Xiaomi surged as much as 16% on Tuesday, the first trading day since the company launched its SU7 electric car ahead of the Easter holiday.”
“The company had said it received orders for more than 50,000 cars in the 27 minutes since sales started at 10 p.m. Beijing time Thursday.”
Negative
“Nio said the promotional deal followed the Chinese government’s policy efforts to promote consumption with trade-ins.”
“Li Auto in late March cut its first quarter delivery estimate by more than 20,000 vehicles.”