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Unveiling the Xiaomi SU7 at Mobile World Congress 2024
The Xiaomi SU7 made its debut at the Mobile World Congress 2024, showcasing the Chinese smartphone company’s foray into the electric vehicle market. The sedan has garnered significant attention and exceeded sales expectations, with over 70,000 orders received since its release in late March.
Surpassing Expectations and Moving Towards Break-Even
Despite undercutting Tesla‘s Model 3 in price by about $4,000, the Xiaomi SU7 is on track to break-even sooner than anticipated. CEO Lei Jun revealed to investors that the company aims to deliver 100,000 units of the electric sedan this year, with the potential to reach 300,000-400,000 in annual sales to achieve breakeven.
Positive Financial Outlook and Market Expansion
Analysts at Citi raised their earnings per share forecast for Xiaomi, citing the strong performance of the auto segment. With a gross profit margin forecasted at 5-10%, Xiaomi is set to capitalize on the success of the SU7 and potentially expand its market presence globally in the future.
Strategic Focus on Domestic Market and Future Plans
Lei Jun emphasized Xiaomi’s commitment to focusing on the domestic market for the next three years, leveraging its established brand presence in over 100 countries. While plans for a new electric SUV in 2025 have surfaced, details remain confidential as Xiaomi continues to build momentum in the EV market.
Building on Success and Looking Towards the Future
The success of the Xiaomi SU7 launch highlights the company’s potential to disrupt the electric vehicle market with competitive pricing and innovative offerings. As Xiaomi continues to ramp up production and explore new opportunities, the future looks promising for this emerging player in the automotive industry.
Customizable ambient lighting in the upgraded Model 3 pic.twitter.com/923Lm3KUch
— Tesla (@Tesla) January 29, 2024