In major news on Hong Kong stocks, Xiaomi Corporation (HK:1810) soared to eighth spot in China’s electric vehicle (EV) upstart race following the successful sale of over 7,000 units of its first EV model, the SU7 Sedan. Leveraging its well-established reputation as a leading provider of smartphones and home appliances, Xiaomi is primed to make a significant impact in this new sector.
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In today’s trading session, Xiaomi shares surged by 3.2%. Year-to-date, the stock has soared by almost 30%, driven by optimism surrounding the company’s debut in the EV market.
Xiaomi, a global company known for consumer electronics and smart devices, recently ventured into the EV sector.
Xiaomi’s EV Dreams
Xiaomi began the deliveries for the SU7 in late March and achieved sales of 7,058 units in April. The company aims to reach over 100,000 deliveries this year, translating to an average monthly sales target of 11,618 units for the rest of 2024. Earlier, in December 2023, the company expressed its aspiration to be ranked among the world’s leading five automakers.
Xiaomi’s SU7 model is marketed as a high-performance sedan featuring “super electric motor” technology, positioning itself to rival industry titans such as Tesla Inc. (NASDAQ:TSLA). On the plus side, Xiaomi’s SU7 is priced approximately $4,000 lower than Tesla’s base Model 3 in China.
In April, Tesla’s sales in China reached 31,421 vehicles, down 49.64% from March and 21.36% year-over-year. For the first three months of 2024, Tesla’s sales in China reflected a year-over-year decrease of 7.64%. On the other hand, the local giant BYD Co. Limited’s (HK:1211) sales reached 313,245 new energy vehicles (NEVs) in April, marking a 3.6% increase from March and a significant 49% surge from April 2023.
Xiaomi’s robust foray into China’s competitive electric vehicle market is expected to disrupt the world’s largest automotive market even further. In an environment marked by intense price competition and declining demand, the company’s entry promises to shake up the status quo.
Is Xiaomi Stock a Good Buy?
On TipRanks, 1810 stock has been assigned a Strong Buy consensus rating based on nine Buys and one Hold recommendation. The Xiaomi share price target is HK$21.64, which is 8.3% above the current trading level.
