Xiaomi Pins Hopes on Hybrid SUV as Goldman Warns Auto Losses and Profit Halving Loom
12.06.2026 - 11:53:13 | boerse-global.de
Xiaomi is charging into the hybrid SUV market with a government green light, hoping to plug widening losses in its electric-vehicle division. But just as the tech giant secures approval for a new family-oriented model, Goldman Sachs has thrown cold water on the near-term outlook, forecasting a 50% plunge in net profit for the second quarter of 2026.
The Chinese Ministry of Industry and Information Technology has officially authorised production of Xiaomi’s first extended-range electric vehicle, a large SUV codenamed “Kunlun N3”. It will be sold under the new sub-brand “Skynomad”. Stretching more than 5.3 metres in length, the hybrid directly targets Li Auto’s popular family SUVs. The vehicle offers a pure-electric range of 500 kilometres, with total driving range pegged at roughly 1,500 kilometres. Battery cells will be supplied by Sunwoda and CALB.
The shift into hybrids comes as Xiaomi’s pure-EV business loses momentum. Deliveries in May fell 11% month on month to 32,759 vehicles, putting the full-year target of 550,000 units under serious pressure. The company needs to accelerate sharply in the second half. Meanwhile, the financial strain is evident: the auto division posted an operating loss of $5,600 per car in the first quarter, and gross margin in the EV segment slipped to 20.1%. The new hybrid SUV, with its promise of higher margins and larger sales volumes, is seen as a critical remedy.
Goldman Sachs, however, warns that the second quarter of 2026 will be painful. The bank expects overall revenue to inch up just 1% year on year. Strip out the electric-vehicle and AI businesses, and core revenue is likely to be 9% below last year’s level. More alarmingly, adjusted net profit is forecast to tumble by 50% to 5.4 billion yuan. Despite the bearish near-term call, Goldman maintains a “Buy” rating, indicating confidence in Xiaomi’s long-term strategy.
Should investors sell immediately? Or is it worth buying Xiaomi?
The stock is feeling the heat. Having touched a fresh 52-week low of €2.82 on Thursday, shares have since recovered slightly to trade around €2.92 before slipping back to €2.88. The year-to-date decline stands at roughly 35% (or 36% by some measures), while the twelve-month loss exceeds 50%. Technical indicators paint a weak picture: the relative-strength index is hovering between 30.6 and 33.9, close to oversold territory. Jefferies has also turned bearish, downgrading the stock to “Underperform” on the back of weak smartphone margins, with a price target that exactly matched last week’s low.
On the technology front, Xiaomi is pressing ahead with a major operating-system overhaul. HyperOS 4 will replace the long-standing MIUI interface in August 2026. Built on Flutter and Rust, the new platform promises leaner, more secure code and brings on-device AI tools for photo editing and transcription, eliminating the need for cloud connectivity. The system is designed to seamlessly link smartphones, wearables, and electric vehicles. To underscore the integration, Xiaomi has unveiled a robotic charging arm that automatically plugs into its EVs.
The company is pouring resources into these initiatives, with R&D spending set to exceed 16 billion yuan in 2026. A token distribution for AI models has already allocated 80 out of a planned 100 trillion tokens. On June 17, the same day the public comment period for the ministry’s hybrid-SUV approval closes, Xiaomi will also launch a crowdfunding campaign for new lifestyle products, including its first portable Mijia espresso machine.
Xiaomi at a turning point? This analysis reveals what investors need to know now.
For investors, the immediate focus remains on the second-quarter earnings report. If Goldman’s profit forecast proves accurate, the stock’s support at €2.82 is likely to come under heavy fire. Xiaomi’s dual bet on hybrid EVs and AI may be the right long-term play, but the market is demanding evidence that the financial bleeding can be stopped.
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