In key news on Hong Kong stocks, Xiaomi Corporation (HK:1810) shares soared due to the optimism surrounding the upcoming debut of the company’s electric vehicles (EVs). The company will start delivering its SU7 model on March 28, with price and other details to be unveiled during a scheduled launch event. Xiaomi stock was up 10.5% as of writing, breaking the downward trend so far this year.
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Xiaomi, a global company known for consumer electronics and smart devices, has recently ventured into the EV sector.
Xiaomi’s EV Aspirations Take Shape
In December, Xiaomi showcased its first EV and revealed its ambition to rank among the world’s top five automakers. The SU7 model is positioned as a high-performance sedan with “super electric motor” technology, aiming to compete with industry giants like Tesla Inc. (NASDAQ:TSLA). The cars will be manufactured by state-owned Beijing Automotive Group Co. (HK:1958) at a Beijing factory capable of producing 200,000 vehicles annually.
Xiaomi has committed to investing $10 billion in the automotive sector over the next decade. It stands out as one of the few new entrants in China’s EV market to receive approval from authorities, who have been cautious about exacerbating the supply.
Speaking of challenges, Xiaomi is entering the market amid a tough time in China’s auto industry. The sector is currently grappling with excess capacity and declining demand, leading to a fierce price war within the market.
Is Xiaomi a Good Stock to Buy?
On TipRanks, 1810 stock has been assigned a Strong Buy consensus rating based on all Buy recommendations from seven analysts. The Xiaomi share price target is HK$20.02, which is 53% above the current trading level.
