Xiaomi Corp. is swiftly nearing an unprecedented peak in share price, having successfully navigated the congested electric vehicle market, echoing its previous accomplishments within the smartphone industry.
On Friday at 11:59 AM (GMT+8), the company’s Hong Kong-listed stock rose by 0.16% to 31.65 HKD per share.
The tech giant has seen its share price increase by approximately 100% this year, outpacing global counterparts, owing to its rapid ascension in the Chinese EV market, challenging contenders like BYD Co. and Tesla Inc.
The trajectory mirrors Xiaomi’s 2011 smartphone launch, which ultimately saw the company compete with big players like Apple and Samsung. Currently, Xiaomi’s Hong Kong-listed shares are just 10% shy of their 2021 apex.
Despite skepticism surrounding Xiaomi’s $10 billion investment in the EV market due to the fierce competition, the company has managed to outperform global auto and smartphone indices, even amid unclear market recovery projections.
Xiaomi distinguished itself by posting higher-than-expected sales growth in the third quarter, with the EV sector comprising 10% of the total revenue, exploiting its youth appeal and marketing prowess developed in the smartphone sector.
Analysts predict Xiaomi’s total sales to double by 2025 upon the launch of its new YU7 SUV, making its EV sector to potentially take over smartphones as the company’s main growth driver.
