Xiaomi's 800,000th Rollout Meets a EUR 24 Billion Bet — and a Share Price Still 56% Off Its Peak
Published on 09/12/2026 at 20:10 | Editorial boerse-global.de
Xiaomi has now handed over more than 800,000 vehicles since deliveries began in April 2024, founder Lei Jun announced on Monday — a milestone reached in roughly 29 months. The company's automotive arm is scaling fast, with monthly shipments in August 2026 still running above 30,000 units. Yet none of that momentum has translated into relief for shareholders.
The product pipeline keeps widening. On 7 September, Xiaomi unveiled three new SUVs under its Sky Nomad banner — the N70 Pro, N70 Max and N90 Max — pushing the brand further upmarket. Days earlier, at IFA in Berlin, the group signed letters of intent with eight German dealer groups, among them Emil Frey Germany, Ernst Dello and Hahn Automobile, laying the groundwork for a European launch of its battery-electric cars in 2027 that will start in Germany. A separate agreement with the LUEG Mobility Group was also part of the 3 September package. The emphasis is shifting visibly: from pure domestic volume growth toward a genuinely global footprint.
A EUR 24 Billion Commitment to Technological Self-Reliance
Backing that ambition is a spending plan of more than EUR 24 billion for the years 2026 to 2030. The money is earmarked for research and development, with artificial intelligence, operating systems, semiconductors, intelligent vehicles, robotics and manufacturing technology as the priority fields. The scale of the program signals how determined Xiaomi is to reduce its dependence on outside suppliers.
The clearest expression of that goal is the Xring O3, a 3-nanometer chip developed entirely in-house. It already powers both the company's flagship foldable and the new Pad 9 Pro Max tablet. Taken together — chip design, vehicle manufacturing and a software ecosystem — the strategy is meant to transform Xiaomi from a smartphone maker into a broader technology group.
EV Revenue Grows, Losses Persist
Second-quarter 2026 figures show both sides of that transition. The segment bundling electric vehicles, AI and other new initiatives lifted revenue 17.1% to roughly USD 3.7 billion, of which about USD 3.5 billion came from vehicles. The unit's operating loss, however, remained around USD 385 million — heavy investment in a business still deep in the red.
Should investors sell immediately? Or is it worth buying Xiaomi?
At group level, revenue slipped 6.1% year on year to USD 16.0 billion, though it edged past analyst forecasts. Net profit fell 20.3% to approximately USD 1.4 billion, and on an adjusted basis the decline was even sharper at 42.6%, leaving about USD 920 million.
Memory costs have added to the margin squeeze. Xiaomi president Lu Weibing put first-quarter 2026 memory expenses at nearly four times the prior-year level. In response, Xiaomi, Huawei and Honor raised prices on several models in early September, with top-tier devices going up by as much as 1,000 yuan.
India Probe and a Muted Foldable Launch Weigh on the Stock
On the consumer side, Xiaomi showcased more than 380 products at IFA and announced a broad European rollout of its Mijia smart-home brand, leaning heavily on AI across an ecosystem spanning phones, appliances and now cars. The commercial reception for its foldable flagship has been less encouraging: the Xiaomi 18 Fold, which went on sale last Tuesday and is aimed squarely at Apple and Huawei in the premium tier, has coincided with a 2.1% share-price decline since launch.
A heavier drag comes from India. More than a month ago it emerged that the country's Serious Fraud Office had recommended investigating Xiaomi's Indian operations over possible irregularities in its business model and compliance with foreign investment rules. The stock has shed 9.2% since that disclosure.
Friday's close brought a 2.3% daily gain to EUR 2.90, but the week as a whole finished down 6.8%, and year-to-date the shares have lost about a third of their value. The paper now trades 56% below its 52-week high of EUR 6.54, set on 25 September 2025, with a market capitalization of EUR 77.11 billion.
For investors, the picture splits cleanly in two. Operationally, the auto division and the European build-out are delivering tangible progress; regulatory risk in India and a lukewarm premium phone debut are capping the upside for now. Whether the pivot toward Europe and an AI-centered ecosystem wins over the market will only become clear once the first European deliveries actually begin in 2027 — and once the billions committed to chips and vehicles start showing up on the bottom line.
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