The share price of China-based Xiaomi Corporation (HK:1810) gained 1.51% after its founder, Lei Jun, expressed strong optimism about the company’s entry into the electric vehicle (EV) market in an interview with the country’s state broadcaster. The company is launching the SU7 series in the EV segment, which is expected to hit the market in early 2024, positioning it against BMW AG (DE:BMW) and Tesla, Inc. (NASDAQ:TSLA).
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The Xiaomi share price has witnessed a huge growth of over 50% in the last 12 months.
Xiaomi provides an extensive range of consumer electronics and intelligent devices, such as smartphones, smart home devices, and wearables.
Xiaomi’s EV Ambitions
Jun’s vision for Xiaomi’s EV launch is ambitious, with the development cost being ten times the industry average. The company has successfully crafted its first EV prototype with an investment exceeding ¥10 billion through the collaborative efforts of 3,400 engineers.
The significant investment highlights the company’s aspirations to take over the highly competitive EV market. The company’s SU7 Series comprises three models—SU7, SU7 Pro, and SU7 Max, manufactured by the state-owned Beijing Automotive Group Co.
While Jun is upbeat about Xiaomi’s EV dreams, he expressed concerns about some potential supply chain issues, mainly the capacity to fulfill orders promptly if the company’s EV offerings see high demand.
Xiaomi Share Price Forecast
On TipRanks, 1810 stock has been assigned a Strong Buy consensus rating based on all Buy recommendations from eight analysts. The Xiaomi share price target is HK$20.83, which is 31% above the current trading level.
