Xiaomi Creates an Overseas Auto Unit as Investors Weigh Growth’s Cost
Published on 11/07/2026 at 08:33 | Editorial boerse-global.de
Xiaomi is giving its car business a dedicated international structure just as investors look for evidence that the company’s expansion can translate into earnings. Media reports on Friday said Auto Vice President Yu Liguo would also lead the new unit. The move gives the overseas auto operation a distinct organization, while the business’s profitability remains a key question ahead of Xiaomi’s next results.
The company’s latest delivery figures show momentum: Xiaomi reported more than 50,000 electric vehicles delivered in October, its highest monthly total of 2026 and the third consecutive month of sequential growth. Reuters reported that about 336,000 vehicles were delivered in the first ten months, against a full-year target of 550,000. Xiaomi did not disclose an exact October figure or a breakdown by model.
The delivery milestone has featured in accounts of a positive share-price reaction on the following trading day. Reports on a Thursday rise also cited a broad recovery in Chinese internet stocks and Xiaomi-specific awards at the World Internet Conference forum. Those explanations do not establish a single, exclusive catalyst for the shares’ move.
Should investors sell immediately? Or is it worth buying Xiaomi?
Goldman Sachs, meanwhile, kept its Buy recommendation but cut its price target on Thursday from HK$39 to HK$35. The bank also lowered its revenue and adjusted net profit forecasts for 2026–2028, citing weaker expectations for electric-car sales and higher investment in artificial intelligence. The revised target puts more emphasis on whether Xiaomi can turn operating growth into a convincing earnings outlook.
A separate analyst estimate points to near-term pressure: UOB Kay Hian forecast revenue of 106 billion RMB for the third quarter of 2026, down 6.7% year over year and 3.1% quarter over quarter. The figures are estimates, not reported results. If revenue weakens while spending rises, progress in vehicle deliveries may not be enough to ease concerns about the company’s earnings trajectory.
Xiaomi is also pursuing longer-term technology and supply-chain initiatives. On Tuesday, it reported that a humanoid robot had worked for the first time for eight hours at a sorting station in its car factory and responded autonomously to deviations. An embodied foundational model was tested in an employee’s apartment. Separately, Sunwoda Electronic announced on 30 October that Xiaomi, through a wholly owned subsidiary, planned to invest 1.7 billion yuan in Sunwoda EVB, the battery business, for a 5.34% stake.
The third-quarter 2026 results are scheduled for 24 November. Investors will be watching for the company’s account of how vehicle growth, AI spending and other investments fit together—and whether its outlook supports the earnings expectations that Goldman Sachs has now marked down.
Ad
Xiaomi Stock: New Analysis - 7 November
Fresh Xiaomi information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
