Xiaomi Shares Jump After Launch of Its First Electric Vehicle
By Tracy Qu
Xiaomi's shares surged after the tech company unveiled its maiden electric vehicle, a competitively-priced sedan vying against Tesla and others for market share in China's crowded EV space.
The stock was 12% higher in Hong Kong on Tuesday, the first trading day after the EV was unveiled late last week. The early gains put the shares on track for their biggest one-day gain in two years. Over the past 12 months, the shares have gained 39%.
Xiaomi, a Beijing-based company better known for its smartphones, last week launched its SU7 four-door sedan with a lower-than-expected starting price of around $30,000.
Deliveries are slated to start this week and Xiaomi received nearly 90,000 refundable orders in the 24 hours after the EV's launch. A check by Dow Jones Newswires on Xiaomi Car's WeChat mini program suggests orders may take 20 to 23 weeks to arrive.
Xiaomi is expected to ship 5,000 to 6,000 of the vehicles in April, with full-year sales at 55,000 to 70,000 units, according to Citi auto analysts led by Jeff Chung in a research note. By comparison, Chinese startups Li Auto and Nio delivered about 376,000 and 160,000 vehicles, respectively, last year.
Citi analysts said in the same report that believe the Xpeng would be "the biggest victim" from the entrance of Xiaomi's SU7 into the market, given that their average selling prices overlap. They kept a sell rating on XPeng and a buy rating on Xiaomi. Xpeng's shares recently down 5.8%.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
April 02, 2024 00:17 ET (04:17 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst
-
How GLP-1 Drugs Like Ozempic Are Boosting Biopharma Stocks