Xiaomi, best known for its smartphones, is the latest firm to launch electric vehicles in the Asian market.
XIAOMI – Weekly Chart
Xiaomi has been on an uptrend this year, which can continue to the 20 level.
The Chinese tech giant has now unveiled the SU7, a new battery-powered luxury vehicle, with the company’s CEO saying it will target Tesla in the world’s largest EV market.
“Xiaomi’s goal is to make a dream car that is as good as Porsche and Tesla,” said billionaire CEO and co-founder Lei Jun. Lei did not confirm the price of the SU7, which launches next year and intends to compete with luxury electric vehicles like the Tesla Model S and Porsche Taycan Turbo.
Xiaomi, founded in 2010, said it would invest $10 billion in EV production in 2021. The company is best known for producing smartphones that are cheaper than Apple or Samsung. According to data from Counterpoint Research, the company’s smartphones are the third most popular globally, with a 14% market share.
The company seeks to become a significant global carmaker within the next few decades. Lei says it will be the “final major entrepreneurial project” of his life.
Xiaomi’s arrival in the highly competitive Chinese EV market will add to the growing pressure on Tesla from domestic carmakers in the country. Elon Musk’s firm expects to be overtaken by domestic rival BYD as the world’s largest EV producer by the end of 2023.
In response, Tesla plans to refresh its most popular car. Bloomberg reports that the company aims to produce a new version of the Model Y in China next year. Musk has noted the rise in Chinese EV manufacturers as the US carmaker’s main competition, describing them as “extremely competitive”.