Xiaomi’s $8 billion stock rally faces a key test when the Chinese smartphone giant unveils its first electric vehicle Thursday, as it attempts to muscle into an unfamiliar and intensely competitive market.
It will start selling its SU7 series in China, the result of a $10 billion foray into the world’s largest EV market dominated by Tesla and BYD. The sedan will probably enter the most competitive segment, based on pricing predictions by analysts.
Billionaire co-founder Lei Jun has called the challenge his final major endeavor, testing Xiaomi’s ability to crack a crowded market for a second time with its technological capabilities. With a year-long EV price war going on in China, reception for the SU7 will likely dictate Xiaomi’s stock momentum after a 22% gain since a February low.