Xiaomi Stock Surges as it Enters EV Race to Rival Tesla

On Thursday, Xiaomi stocks rose as the Chinese firm officially revealed its long-awaited electric vehicle (EV) Speed Ultra 7 (SU7) sedan to rival Tesla.

On Friday, the Beijing-based smartphone company’s stock increased by 1.22% to HK$14.94 ($1.85) apiece.

Meanwhile, Lei Jun, the founder and CEO of the third leading smartphone brand in China, announced that the company’s initial electric vehicle would range from 215,900 yuan ($29,874) to 299,900 yuan ($41,497) in China.

The initial price is approximately $4,000 lower than Tesla’s Model 3 sedan, which begins at 245,900 yuan in China.

Furthermore, earlier this week, Lei hinted at the launch of the SU7, expressing his desire for it to be the most attractive, user-friendly, and intelligent car priced under 500,000 yuan ($69,180).

According to Xiaomi’s CEO, the Beijing-based firm wants to make a dream car similar to Porsche and Tesla. He also emphasized the importance of learning from the world’s top car manufacturers to produce high-quality vehicles.

Meanwhile, the smartphone firm had previously stated its aim to attract premium consumers with the new car. Its pricing indicates competitive positioning against foreign competitors.

In China, an imported Porsche Taycan begins at 898,000 yuan ($124,248), while Tesla’s Model S, the premium electric sedan, starts at 698,900 yuan ($96,700).

SU7 Features Unveils at Xiaomi Launch Event

Xiaomi Speed Ultra 7 sedan revealed its features at the Bejing-based company’s launch event on Thursday.

Lei stated that the standard version of Xiaomi’s SU7 boasts a starting range of 700 kilometers (435 miles), surpassing the long-range version of Tesla’s Model 3.

Xiaomi announced that orders for the car had surpassed 50,000 units within 27 minutes of sales commencement.

According to the video shared by the company, the launch event was attended by founders and CEOs of several Chinese EV manufacturers, including He Xiaopeng from XPeng Motor, William Li from Nio, and Li Xiang from Li Auto.

Despite fierce competition in China’s auto industry, Xiaomi’s significant automotive aspirations coincide with a saturated market, propelled by substantial state subsidies over the past decade.

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