Chinese smartphone giant Xiaomi’s first EV boosts its market value by $4 billion
Chinese smartphone giant Xiaomi seems to have hit the ball out of the park with the launch of its debut EV, the SU7, last week. The launch has pushed its market value up by $4 million, with the company now nearing valuations higher than GM and Ford.
Reuters reports this morning that shares of Xiaomi surged as much as 16% – but still, throwing cold water on the good news, analysts predict that the company still stands to lose a ton of money on each car, equally around $10,000 per car this year.
Xiaomi’s stock reached its highest since January 2022. At the day’s highest, the company had a valuation of $55 billion at a share price of HK$17.34, which nudges it higher than legacy automakers General Motors (valued at $52 billion) and Ford (valued at $53 billion).
Last Thursday, Xiaomi opened up orders for its SU7 sedan – a targeted rival to Tesla’s Model 3 – after releasing competitive prices starting at $29,870, priced about $4,000 less than the Model 3.
Friday, the company said pre-orders reached nearly 90,000 in the first 24 hours. Yesterday Xiaomi’s car app flagged would-be buyers that delivery time for the new SU7 and SU7 Pro could take 18 to 21 weeks. The most expensive model, the AWD SU7 Max (priced at 299,900 yuan/$41,500) would take 27 to 30 weeks.
Still, despite its early signs of success, Xiaomi says that it expects to take a financial hit on the new SU7, with analysts saying that the loss could be substantial.
Citi Research analysts didn’t mince words: “We maintain our cautious view that ultimately everyone could be a loser” within the 200,000 to 300,000 yuan ($27,649.90 to $41,474.85) segment, reports Reuters.
Xiaomi predicts a volume of 60,000 units this year, which Citi estimates could bring in a net loss of 4.1 billion yuan ($566.82 million). On average, that’s around 68,000 yuan ($9,400) per car, the report said.
Apparently, Xiaomi is also asking suppliers to raise the new EVs monthly production capacity to 10,000 units, “up from 3,000 in March and 6,000 in May,” as reported by Chinese news outlet Yicai and cited by Reuters.
Electrek’s Take
Xiaomi is an interesting case here, for a few reasons. Analysts predict the company will lose money on its lower-priced SU7, but the smartphone maker has a tidy cash reserve of $15 billion to help it weather the price war happening in China. Even Tesla, which has been slashing prices for months, has seen a dip in market share in January, despite being one of the most popular brands in China.
Also, the company has tremendous brand appeal to the Chinese consumer, who are already familiar with its products and user interfaces. In addition to an alluring price point, the SU7 is a connected car that syncs with other devices. Compared to other EV makers, Xiaomi, too, has an edge on software and a jumpstart on autonomous driving, which it has been testing on roads for a few years.
Xiaomi, which was once blacklisted in the US by Trump for its alleged ties to China’s military, is the world’s third-largest smartphone maker after Apple and Samsung and also produces a slew of electronics in addition to e-bikes and scooters. Of course, its products are unavailable in the US, but its biggest markets outside of China are Europe and India.
Still, Xiaomi is jumping into a fiercely dense and competitive market that is already flooded with hundreds of new models from dozens of brands in China, topped by powerhouse BYD. But these early signs of success are sure to inspire investors, so it’s looking good for Xiaomi so far. Plus the company is likely looking to make up for any losses with future models and higher-end variants down the road.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes Tern’s NYC e-bike delivery fleet surpasses 1 million miles, the CPSC has a stark warning about Rad’s e-bike batteries, what parents should know if their kid wants a Sur Ron e-moto, JackRabbit MG Doble review, Strutt’s EV1 electric mobility chair, and more.
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The Port of Houston took a big step towards electrifying its operations this week, when the stevedores at Houston Terminal deployed the first new SANY electric reach stacker at the major seaside port – and it won’t be the last.
Multinational equipment brand SANY launched its latest 50-ton electric reach stacker earlier this summer. The new machine drew headlines by cleverly pairing gravity and a KERS-style regenerative braking system attacked to its boom to generate electricity as it lowers loads. The tech significantly improved the machine’s operating efficiency and reduced the sort of costs typically associated with charging and downtime.
With the purchase of the new SANY electric reach stacker from local equipment dealer, Equipment Depot, Houston Terminal has begun to do its part to help keep the air and water around America’s busy seaports pollution-free.
“In this market, there’s a shift towards sustainable equipment,” explains Greg Schertz, Sr. National Account Executive at Equipment Depot — a national equipment supplier that sells and services to roughly 85% of US sea ports. “Electric equipment is a growing trend, and it has become more than a conversation point. Actual machines are going into service and are proving their capability.”
Equipment Depot is quick to point out that the national move towards electrification isn’t about regulations. “The bigger picture is that the world has become more of a global market,” says Chad Larson, VP of Heavy Trucks and Port Equipment at Equipment Depot. “(And) in the port industry, there are many relationships and parent companies with ties into Europe and other parts of the world where zero carbon initiatives are more progressive than the US.”
Robert Marshall, General Manager of Houston Terminal, echoes Schertz’ sentiment, “Electric equipment has a much easier, much simpler maintenance program, because basically you’re just maintaining tires.”
SANY electric reach stacker
At its launch in August, SANY said its new 50t reach stacker would be available with a 512 kWh swappable battery pack. That pack isn’t just huge, it’s compatible with the brand’s other electric equipment assets, and can support both DC fast charging when swapping isn’t practical and the grid itself by “plugging in” to the company’s BESS modules when not needed.
Houston Terminal bought the SANY unit with help from a Texas Emissions Reduction Plan (TERP) Grant, part of TERP’s Seaport and Rail Yard Areas Emissions Reduction (SPRY) Program to replace older drayage trucks and equipment at seaports and rail yards. Houston Terminal intends to apply for another TERP grant to buy a second reach stacker in 2026.
SOURCE | IMAGES: Equipment Depot; via AJOT.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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The mining equipment experts at Sandvik have been developing next-generation electric equipment options for years – largely on their own. Now, with a €500 million capital injection from the EIB, the company is ready to get serious about its next-generation machinery.
The European Investment Bank (EIB) is the lending arm of the European Union (EU), and its core mission is to strengthen the global competitiveness, technological innovations, and sustainability initiatives of European companies like Sandvik by providing affordable financing for R&D projects conducted on the continent.
“We have a strong strategic focus on developing solutions that strengthen our technology leadership, and that enhances productivity, safety and sustainability for our customers,” explains Stefan Widing, President and CEO of Sandvik. “The EIB financing supports our R&D initiatives and provides flexibility to our overall funding strategy.”
The €500 million loan has a seven-year term, and will support Sandvik’s efforts to develop new advanced, productive, safe, and (above all) sustainable heavy equipment solutions across the company’s business lines.
Electrek’s Take
We’ve covered Sandvik’s electric equipment several times over the years, from their surface drill rigs to their underground loaders to their quarry- and concrete-focused electric cone plants, and the brand’s commitment to sustainability and operator safety has been commendable. Even the company’s push towards automation and AI, often seen as a corporate tactic to slash labor costs and boost stock prices before the executives bail out with a fat stack of cash fulfill their exit strategies, seems to be genuinely motivated by worker safety in one of the world’s most dangerous environments.
Of course, I said that about Volvo and they’re actively suing California to be able to sell more diesels as aI type this, so what do I know?
SOURCE | IMAGES: Sandvik.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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