Xiaomi is fighting a two-front war. Its stock hit a fresh 52-week low of 2.82 euros this week, yet management is simultaneously pouring hundreds of millions into share repurchases and securing regulatory approval for a new line of extended-range electric vehicles. The moves signal a clear shift in strategy aimed at reversing a brutal selloff that has erased roughly 50% of the stock’s value over the past twelve months.
The Chinese tech group has wasted no time deploying a freshly authorised buyback programme, which permits it to repurchase up to 20 billion Hong Kong dollars worth of shares over the next twelve months. On June 8, it bought 3.6 million shares for nearly 98 million HKD. Three days later, as the stock was plumbing its lowest level in a year, Xiaomi snapped up another 7.8 million shares for around 202 million HKD. The purchases bring the total deployed so far under the new mandate to roughly 300 million HKD. The relative strength index has dropped to 32.6, pushing the shares deep into technically oversold territory — and the board is clearly taking the opportunity to signal confidence.
On the EV front, Xiaomi has executed a rapid U-turn. Having previously ruled out any vehicle equipped with a combustion engine, the company on June 11 obtained approval from China’s Ministry of Industry and Information Technology to produce extended-range electric vehicles, which use a small petrol engine as a generator to recharge the battery. The shift is a direct response to range anxiety among Chinese buyers and positions Xiaomi to attack the fast-growing segment dominated by models like the Li Auto L9. The new vehicles will be sold under a sub-brand called Skynomad, with the first model — internally code-named “Kunlun N3” — slated to launch in the second half of 2026. It will be a large SUV featuring a battery pack of more than 70 kilowatt-hours, capable of delivering up to 500 kilometres of all-electric range.
Should investors sell immediately? Or is it worth buying Xiaomi?
The buyback alone will not salvage the stock. Investors are watching whether the new EV line can deliver the volumes Xiaomi needs to justify its sprawling ambitions. The company has a delivery target of 550,000 vehicles for 2026, but between January and May it sold only about 150,000 units — a shortfall that underscores the need for a volume-oriented model like the Kunlun N3. Meanwhile, Xiaomi continues to invest in software and artificial intelligence; it recently unveiled a new AI programming assistant and is integrating its MiMo language model deeper into the “Human × Car × Home” ecosystem. Yet the market’s attention remains fixed on the auto business.
The public comment period for the extended-range vehicle approval ends on June 17, after which Xiaomi is expected to receive final clearance. With the stock trading at 2.89 euros — a whisker above the week’s nadir — the next few weeks will determine whether management’s twin gambit can begin to restore investor confidence.
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