Xiaomi Builds a Battery Empire and a 1,000?HP SUV, Yet the Market Remains Unimpressed
13.05.2026 - 21:12:03 | boerse-global.de
Investors gave Xiaomi’s shares a modest lift on Wednesday, with the stock climbing over 4% to around €3.56. But the bounce does little to mask a grim long?term picture: the equity has shed roughly 20.8% since the start of the year and still trades well below its 12?month average. The disconnect between the company’s ambitious electric?vehicle ramp?up and its languid share price is growing harder to ignore.
The tech giant is pouring resources into every layer of its EV operation. Its newly established subsidiary, Beijing Xiaomi Jingxu Technology, is building a battery?cell plant with an annual capacity of 15 gigawatt?hours. Traction batteries account for 35% to 45% of an electric car’s total cost, so bringing production in?house could give Xiaomi greater control over expenses, software integration and vehicle architecture — while also reducing reliance on CATL and BYD’s FinDreams Battery, which together controlled 54.4% of the global traction?battery market in the first quarter of 2026.
At the same time, Xiaomi is preparing to launch its next model. The YU7 GT, a high?performance crossover, is set to be unveiled at the end of May. Chairman Lei Jun describes it as a “pure?bred GT” tuned on the Nürburgring Nordschleife. The dual?motor powertrain delivers nearly 1,000 horsepower, pushes the car to 300?km/h, and offers a CLTC range of around 700?km. Brembo brakes and an air suspension system round out the premium package, which is expected to carry a price tag of up to 500,000?yuan.
Parallel to the model push, Xiaomi is restructuring its automotive leadership to prepare for international expansion. Yu Liguo, vice?president of the automobile business, now heads the newly formed Overseas Business Preparation Group, reporting directly to CEO Lei Jun and president William Lu. Production has been handed to Song Gang, a former factory director at Tesla’s Shanghai plant. The overseas rollout is scheduled for the second half of 2027, with Europe as the first target, followed by right?hand?drive markets in the first half of 2028.
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A European R&D centre in Munich, staffed by about 50 people, is already adapting vehicles to local regulations. The team is led by Rudolf Dittrich, with Claus?Dieter Groll handling vehicle dynamics — both are ex?BMW engineers. Xiaomi has also poached Dieter Lorenz, who spent six years at Tesla overseeing delivery operations in central Europe, to strengthen its logistics network.
The company is executing on deliveries, too. In the first quarter it shipped roughly 80,000 vehicles. The full?year target is 550,000 units, representing growth of about 34% over 2025. To hit that number, Xiaomi will need to average some 55,000 cars per month from May through December — above its current monthly record of 50,000.
Management is trying to shore up investor confidence with heavy share buybacks. By the end of April, it had repurchased 7.4?billion Hong Kong dollars’ worth of its own stock, already exceeding the total for the whole of 2025.
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All eyes are now on 26 May, when Xiaomi releases its unaudited first?quarter results. Citigroup, which maintains a buy rating, forecasts revenue will slip 12% to 98.4?billion yuan and adjusted net profit will tumble 45% to 5.9?billion yuan. The bank points to weakening smartphone revenue and government EV purchase?tax subsidies that are squeezing margins in the auto division. Those headwinds help explain why the market has not yet rewarded Xiaomi’s bold expansion with a sustained share?price rally.
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