Xiaomi's EV Business Turns Profit, Aims for Top 5 Carmakers

Xiaomi, the smartphone giant, has achieved its first-ever quarterly profit in the electric vehicle (EV) business, marking a significant milestone in its entry into the competitive car market. The EV division reported a profit of seven hundred million yuan, a stark contrast to the previous quarters loss. This success contributed to Xiaomis overall net profit of twelve point three billion yuan, surpassing analyst predictions.Despite launching a new smartphone to compete with Apples iPhone, Xiaomis growth in the smartphone sector has been slower than local rival Oppo. The company is also facing challenges due to rising memory-chip prices.Xiaomi is aiming to deliver three hundred fifty thousand electric vehicles this year, with a focus on speeding up deliveries and reducing wait times. However, high demand and production issues have led to some buyers waiting up to nine months for their vehicles.The companys co-founder, Lei Jun, expressed confidence in June that the EV business would become profitable in the second half of this year, fueled by strong orders for Xiaomis first sports utility vehicle. Xiaomi plans to become one of the worlds top five carmakers and start selling its EVs in Europe by two thousand twenty-seven.However, investor confidence is waning due to concerns about safety and factory delays, leading to increased bearish bets among hedge funds.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.