The contrast could not be more stark. As Spanish Prime Minister Pedro Sánchez toured Xiaomi’s Beijing technology park this week, test-driving the SU7 and YU7 electric vehicles and posing for photos with CEO Lei Jun, the company’s shares languished at a 52-week low of EUR 3.39. This price point sits nearly 50% below the annual high, underscoring a deep disconnect between diplomatic fanfare and investor sentiment.
Behind the high-profile visit lies a concrete European strategy. Sánchez learned that Xiaomi plans to begin exporting vehicles internationally starting in 2027, with Europe as the primary target. Spain, where Xiaomi already commands a leading 30% smartphone market share according to Omdia data, is a natural first market. Both sides are now exploring specific collaborations in data centers and artificial intelligence.
Xiaomi’s automotive division provides the hard numbers for this ambition. Since initial deliveries began in April 2024, the company has sold over 500,000 vehicles. It is targeting 550,000 unit deliveries for 2026. Remarkably, the auto business turned profitable by November 2025, just 18 months after its market entry. To fuel further growth, Xiaomi will debut its first hybrid powertrain models at the Beijing Auto Show later this month.
Parallel to its car push, Xiaomi is sharpening its attack on the premium PC market. On April 21, the company will unveil its new Redmi Book Pro 2026 series. The laptops will feature Intel’s latest Core Ultra X7 358H Panther Lake processors. In a direct challenge, Xiaomi’s marketing explicitly positions the devices against Apple’s MacBook Pro M5. The company is forgoing expensive OLED displays in favor of high-resolution LCD panels for the 14-inch and 16-inch models, a move designed to keep prices below 7,999 yuan and democratize access to the new Intel platform. The 14-inch model boasts up to 37 hours of video playback, while the 16-inch variant comes with a substantial 99 Wh battery.
Should investors sell immediately? Or is it worth buying Xiaomi?
These aggressive expansion plans are crashing into a harsh financial reality. The stock’s plunge to its yearly low represents a 24% loss since the start of the year. The driver is a severe profit crunch. The company’s adjusted net profit for the fourth quarter plummeted by 24% year-over-year, pressured by rising memory chip costs and intense competitive pressure. Broader headwinds are also at play, as new US tariffs triggered a sell-off in Chinese tech stocks, dragging the Hang Seng Index lower in early April.
Despite the share price sitting at a yearly low, technical indicators suggest a fragile footing. The stock’s Relative Strength Index (RSI) reading of 70 signals it is overbought in the short term, indicating the recent minor recovery lacks strong conviction.
The upcoming product event on April 21 serves as a critical juncture. Investors will judge whether the new laptops and reinforced European auto strategy represent genuine catalysts or mere distractions from the fundamental margin pressures. Xiaomi’s ecosystem expansion is proceeding at pace, but its success now hinges on reversing the profit decline. If component costs do not fall in the current quarter, the downward pressure on the stock is likely to persist.
Ad
Xiaomi Stock: Buy or Sell?! New Xiaomi Analysis from April 15 delivers the answer:
The latest Xiaomi figures speak for themselves: Urgent action needed for Xiaomi investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from April 15.
Xiaomi: Buy or sell? Read more here...
