Xiaomi’s 43% Profit Collapse Overshadows Bold Glamping SUV Bet
Published on 06/25/2026 at 15:36 | Redaktion boerse-global.de
Investors are punishing Xiaomi despite the company’s ambitious push into outdoor adventure vehicles. The tech giant’s adjusted net profit slumped more than 43% in the first quarter, hammered by a surge in memory chip costs that has turned its smartphone and TV margins to dust. The stock closed at €2.56 earlier this week, barely 5% above its 52-week low of €2.43, and has shed roughly a quarter of its value in the past 30 days alone.
The pain is self-inflicted in some ways. Xiaomi is ploughing record sums into research and development — 9 billion yuan in the latest quarter alone — with over 26,000 staff now working on new products. That spending binge is meant to fuel its electric vehicle ambitions, but the core earnings engine is sputtering. DRAM prices have quintupled, while memory used in TVs has jumped tenfold, and Counterpoint Research expects elevated chip costs to persist through at least the end of 2027.
Sky Nomad: The N90 Full-Size SUV
Management’s answer to the pressure is a new automotive sub-brand called Sky Nomad, targeting the fast-growing “glamping” segment of outdoor enthusiasts willing to spend premium prices. The first model, code-named N90, is a full-size SUV stretching over 5.3 metres with a 3.1-metre wheelbase. It uses an extended-range electric vehicle (EREV) architecture: a 1.5-litre turbo petrol motor acts purely as a generator, feeding a large battery pack. Pure electric range is estimated at 400 to 500 kilometres, but with the range extender engaged the total jumps to more than 1,500 kilometres.
Spy shots show the N90 comes equipped with an integrated rooftop tent, a LiDAR system for advanced driver assistance, air suspension and rear-wheel steering. Chinese industry watchers peg the starting price between 200,000 and 450,000 yuan — directly challenging Li Auto and Aito in the premium SUV space. The official reveal is scheduled for the fourth quarter of 2026.
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Xiaomi is also diversifying its battery supply chain for the new brand. Sunwoda will provide 60% of the battery packs, with CALB taking the remaining 40%, reducing reliance on CATL and BYD’s FinDreams unit. The company plans four new models next year: a revised SU7 with 902 kilometres of range, a SU7 Executive Edition, and two EREV SUVs in five- and seven-seat configurations.
Delivery Target Under Siege
The grand product roadmap cannot mask the immediate operational strain. Xiaomi has set a 2025 delivery target of 550,000 vehicles — 34% more than last year. But from January through May, it handed over just 150,317 units, an increase of only 13.5% year-on-year. That pace falls far short of the trajectory needed to hit the annual goal unless the second half sees a dramatic acceleration. If deliveries do not pick up soon, the stock faces the risk of breaking below the chart support level around €2.51.
Buyback and Short Sellers
The company has tried to stem the bleeding with its balance sheet. A buyback programme worth up to 20 billion Hong Kong dollars was launched at the start of June, with an automatic tranche of up to 4 billion HKD kicking off on June 19. So far Xiaomi has repurchased 30.1 million shares. The effort has been largely futile — the stock keeps sliding. Short sellers now hold roughly 9% of the float, betting that more losses lie ahead.
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The relative strength index has sunk to 20.8, deep in oversold territory. That technical reading suggests a bounce could be due, but the combination of collapsing profits, rising costs, and a delivery gap that keeps widening gives the bears plenty of ammunition. Xiaomi’s next quarterly numbers will reveal whether the assembly lines are finally humming — or whether the gap to its 550,000-unit target only grows larger.
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