A significant shift is occurring within China’s electric vehicle sector, with technology giant Xiaomi making a remarkable entrance. Fresh data reveals that in October, Xiaomi’s vehicle deliveries substantially exceeded those of Tesla in the Chinese market. This development signals a potential reordering of the competitive landscape as the established leader shows signs of weakness and the ambitious newcomer accelerates its operations.
Production Ramp-Up and Market Confidence
The impressive sales figures are underpinned by substantial operational progress. Xiaomi has successfully slashed delivery wait times for its premium SU7 Pro and SU7 Max models. What was once an approximate 30-week delay has been dramatically shortened to a range of just 6 to 9 weeks. This rapid scaling of production capacity demonstrates a significant maturation of Xiaomi’s automotive manufacturing capabilities.
Investors have responded with notable optimism. On the Hong Kong stock exchange, Xiaomi’s shares surged by as much as 4%, reaching HK$44.62. The heightened trading volume observed during this period underscores growing investor conviction in the company’s strategic direction within the automotive industry. This confidence was further reflected in the company’s performance during the Singles’ Day shopping festival, where it generated gross merchandise value exceeding 29 billion yuan across its sales channels.
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October Sales Figures Tell a Compelling Story
According to the China Passenger Car Association, the extent of this market shift became clear with the October delivery numbers. Xiaomi reported the delivery of 48,654 electric vehicles during the month. By contrast, Tesla’s deliveries in China amounted to a modest 26,006 units. This performance marks Tesla’s weakest showing in the Chinese market in three years. Market analysts suggest that Xiaomi’s SU7 and YU7 models are effectively resonating with the preferences of domestic Chinese consumers.
The financial community is taking note of this momentum. In a significant move, Goldman Sachs revised its outlook on Xiaomi, elevating the price target to HK$56.50 and concurrently issuing a “buy” recommendation for the stock.
A Pivotal Financial Report on the Horizon
The upcoming week is set to provide deeper insights into the sustainability of this growth. Xiaomi is scheduled to release its quarterly earnings, which will offer a clearer picture of whether this explosive expansion in the automotive segment is translating into profitability. One conclusion is already evident: Xiaomi’s electric vehicle initiative has progressed beyond a mere experimental project. It has firmly established itself as a core growth driver, actively reshaping the competitive dynamics within the world’s largest market for electric automobiles.
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