Xiaomi's debut Eelectric car, SU7, garners over 100,000 orders amidst strong interest

Chinese smartphone maker Xiaomi starts delivering the first of more than 100,000 EVs ordered

Xiaomi on Wednesday announced that it has garnered over 100,000 orders for its inaugural venture into the automotive industry with the launch of its sporty electric vehicle, the SU7. The Chinese smartphone manufacturer commenced deliveries of the vehicle, marking a significant milestone. Lei Jun, CEO and founder of Xiaomi, expressed his enthusiasm at a ceremony held in Beijing, proclaiming the official debut of Xiaomi's car as the commencement of a true revolution in smart automobiles. He predicted that China would undoubtedly foster the emergence of a prominent company akin to Tesla.

The initial deliveries stem from a limited batch of 5,000 cars already produced by Xiaomi, termed the "Founder's Edition," which includes additional accessories tailored for early adopters. Following the recent launch of the SU7, which stands for Speed Ultra 7, Xiaomi cautioned prospective buyers of potential wait times ranging from four to seven months, indicative of the robust demand for the sedan.

Xiaomi's stock experienced a notable surge of up to 16% on Tuesday, reflecting the strong interest in the SU7. However, a brokerage firm projected that the company could incur losses of nearly $10,000 per car in the current fiscal year. Consequently, Xiaomi's shares dipped by over 3% on Wednesday morning, contrasting with the 1.1% decline observed in the broader Hang Seng Index.

During Tuesday's peak, Xiaomi boasted a valuation of $55 billion at a share price of HK$17.34, surpassing the valuations of traditional U.S. automakers like General Motors.