Xiaomi Faces Reality Check: EV Delivery Target Slips Further as Memory Costs Erode Core Margins
Published on 06/24/2026 at 08:13 | Redaktion boerse-global.de
The gap between Xiaomi's ambitious technological road map and its financial reality is widening at an alarming pace. The Chinese consumer electronics and electric vehicle maker is fighting a two-front war: expanding its nascent EV business while absorbing explosive cost increases in its smartphone heartland. Neither front is yielding good news, and the stock market has taken notice.
Shares scraped a fresh 52-week low of €2.51 on Tuesday, leaving the stock roughly 62% below the June 2025 peak. The year-to-date decline stands at around 43%. A record-breaking share buyback of up to 20 billion Hong Kong dollars — launched in early June — has failed to stem the slide. By mid-month, the company had repurchased roughly 30 million shares, but short sellers still control about 9% of the free float, betting on further downside.
EV ambitions hit a delivery wall
Xiaomi has set a 2026 delivery target of 550,000 electric vehicles. Through the end of May, cumulative deliveries stood at 150,317 units — a 13.5% increase from the same period last year but far below the trajectory needed. The math is unforgiving: from June through December, the company must average around 57,500 vehicles per month, nearly 15% above its all-time monthly record of 50,000 set in December 2025.
May’s figures underscored the challenge. Xiaomi delivered 32,759 EVs, a 17% improvement year over year but a 10.7% drop from April. Analysts at Jefferies have already slashed their full-year delivery forecast to 495,000 units and reduced the valuation multiple for the EV division.
Should investors sell immediately? Or is it worth buying Xiaomi?
The financial drain is significant. In the first quarter of 2026, the EV segment posted an operating loss of 3.1 billion yuan on revenue of 19.9 billion yuan. That weighed heavily on the group’s adjusted net profit, which tumbled 43% to 6.1 billion yuan.
Memory chip costs squeeze the core
While Xiaomi battles to ramp up EV production, its traditional smartphone business faces a cost explosion in key components. Memory chip prices have increased several-fold compared with last year; for TV storage, CEO Lei Jun recently said costs have jumped tenfold. Since the vast majority of Xiaomi’s handsets retail for under $200, passing those costs on to consumers is nearly impossible. The result is a direct hit to gross margins.
The damage was already visible in the first quarter: group revenue fell 11%, marking the first decline in an extended period. Research and development spending, however, rose by roughly one-third as the company invests in artificial intelligence and its new ecosystem.
A key indicator for future margin pressure arrives later today, when US memory manufacturer Micron Technology reports quarterly earnings. Those figures will serve as a bellwether for global memory pricing — and for Xiaomi’s input costs in the months ahead.
New products and a strategic pivot
Xiaomi is not standing still. On the smartphone front, the company plans to launch the Xiaomi 18 series in September, with the high-end Pro model arriving in Europe as early as late September — bypassing the typical six-month delay. The new HyperOS 4 software is expected to debut in China in July or August, with a global rollout to follow shortly after.
Xiaomi at a turning point? This analysis reveals what investors need to know now.
On the EV side, Xiaomi is preparing an entry into the extended-range electric vehicle (EREV) segment. The Ministry of Industry has approved production of the Kunlun N3, a 5.3-meter SUV under the new sub-brand Skynomad, featuring a battery capacity of more than 70 kWh and an all-electric range of up to 500 kilometers. Xiaomi has not yet confirmed the brand name or launch date.
The timing is tricky: industry-wide EREV wholesale volumes plunged nearly 25% in May, the steepest monthly drop in five years. Segment leader Li Auto saw deliveries of its flagship L9 collapse by 74% in the first four months of 2026 compared with the prior year.
The next catalysts
Investors will get two near-term data points to gauge progress. June delivery numbers for EVs are due in the coming weeks and will show whether the production ramp is finally accelerating. The more consequential test arrives on August 26, when Xiaomi reports second-quarter results. Until then, the buyback remains the sole factor propping up the stock. Technically, the shares are deeply oversold, with a relative strength index near 21 — a level that could trigger a sharp rebound if the quarterly report surprises to the upside.
Ad
Xiaomi Stock: New Analysis - 24 June
Fresh Xiaomi information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
