Xiaomi's EV Venture Boosts Revenue Despite Initial Losses
The tech giant's SU7 sedan drives growth but faces profitability challenges as it aims for global expansion.
Overview
- Xiaomi's Q2 revenue surged 32% year-on-year, reaching $12.5 billion, largely due to its new EV unit.
- The SU7 sedan, launched in March, contributed $898 million in revenue but incurred significant losses per vehicle.
- Despite losing $9,200 per car, Xiaomi plans to ramp up production and aims to deliver 100,000 units by November.
- CEO Lei Jun has committed $10 billion to the EV venture, with aspirations to enter the European market and become a top-five automaker.
- Xiaomi's smartphone sales also rebounded, contributing to the overall strong financial performance.