How Xiaomi’s electric car is trading on the stock market
Xiaomi's new electric car takes on board all those who are ready to bet that the market for plug-in cars has not yet sunk into that deep crisis that most fear. At least in China
If, on the one hand, the collapse in demand for electric cars has made observers talk several times about a possible "bubble", pushing big brands to renege on their industrial plans for ecological transition and bringing a good number of startups to the edge of bankruptcy , on the other hand, the enthusiasm with which the markets have welcomed Xiaomi's arrival in the world of electric cars suggests that the sector still has a future.
THE XIAOMI ELECTRIC CAR RACE (BEFORE LEAVING)
The Xiaomi stock, fresh from the debut of its first electric sports vehicle SU7 , has in fact rallied by 8.57% after an intraday peak of 16%. The Beijing company added around $7.6 billion to its stock market value with shares at their highest since January 2022 on the first trading day since the launch of its car that winks at the Porsche Taycan.
THE CHALLENGE WITH TESLA
The real rival, however, should be Tesla which Xiaomi's first electric car, short for Speed Ultra 7, outclasses at least on paper. Its 800 Volt technology, according to what was declared by the parent company, allows you to recharge 220 km in five minutes and 390 in just 10 minutes (the Tesla Model S can charge 225 in the same period of time). The battery is produced by compatriot Catl and has a usable capacity of 101 kWh, for a declared autonomy of 800 km, 10% more than the aforementioned Model S (715 km)
THE USUAL CHINESE PRICE
We don't know whether the claimed performances are true or not. Certainly, however, Xiaomi's new electric car is offered at less than 30,000 dollars for the basic model, cheaper than Tesla's Model 3 in China. On Friday the company declared that it had received around 90 thousand pre-orders (88,898 to be precise) for its first electric car in just 24 hours of going on sale: a figure which, considering the initial annual production capacity of 150,000 cars, indicates exhaustion of orders for the current year.
Today, analysts point out that the Chinese company, which derives most of its revenues of 37.5 billion dollars from smartphones, weighs much more on the stock market than pure car manufacturers, boasting a valuation of 55.2 billion dollars, higher for example to the US General Motors and Ford, which stop at 52.4 and 53.1 billion respectively. Will the future of the electric car be in the hands of the entertainment giants? This is what rivals, from Huawei to Sony , hope for.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/come-corre-in-borsa-lauto-elettrica-di-xiaomi/ on Tue, 02 Apr 2024 13:50:12 +0000.