The unveiling of Xiaomi’s first electric SUV on Thursday will showcase how the Chinese tech company has become an investor darling with its high-stakes bet on the auto market.
Shares of the firm founded by billionaire Lei Jun are within striking distance of a fresh record in Hong Kong after a 64% surge this year. Now valued at $187 billion, Xiaomi is worth more than Chinese EV leader BYD as it grows its footprint in the world’s largest car market.
The new YU7, a direct competitor to Tesla’s Model Y, may help it accomplish that goal. The SUV is a hallmark of Xiaomi’s $10 billion EV strategy as larger vehicles gain popularity across China. It also signifies a deeper shift in Xiaomi’s business model, offering consumers the ability to sync key aspects of their daily lives. That combined ecosystem is what some investors are saying will cement its place as a leader in China’s trillion-dollar tech sector.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.