Xiaomi out to scalp Musk’s bestselling SUV in China with its upgraded and low-cost model
Shares in Xiaomi fell 4.57 per cent to HK$28.4 despite the Beijing tech titan’s confidence over Tesla and its HK$20 billion buyback plan
This followed the firm’s first-quarter net profit missing market estimates, as rising memory chip costs continued to drag its smartphone businesses, leaving its electric vehicles (EV) – Xiaomi’s second-largest revenue contributor – to keep growing.
Xiaomi’s shares dived to a 12-month low of HK$28.24 on Wednesday afternoon, before recovering slightly to finish 4.6 per cent lower for the day at HK$28.40. The stock has lost more than 29 per cent this year and stands roughly 54 per cent below its 52-week high.
“In terms of configuration, driving range and technology, I think we have won (Model Y) across the board,” Lu Weibing, partner and president of Xiaomi, said at an earnings call on Tuesday evening. “Therefore, I also believe that the introduction of this standard version will give us a very significant advantage in competing against the Model Y.”