There are companies that dare to dream big… and then there’s Xiaomi. The brand that won over millions of homes and hearts with affordable phones and smart gadgets is now making a big move into the world of electric cars, and doing it the only way it knows how: going all in from the very beginning. The incredible part isn’t just that it dared to compete with giants like Tesla and Porsche, but that it lost 800 million dollars… and even so, that’s considered good news! Because when the goal is to revolutionize an industry, the real failure would be not to take the risk.
This industry is not simple, and getting involved with a new car is no easy task. But that hasn’t stopped Xiaomi, which has basically been David fighting Goliath. The Chinese brand has shown that it has what it takes to compete in a new field, even if it means losing money along the way. All of this might sound like a disaster, but in reality it’s the complete opposite: it’s the price they are paying to become one of the major players in the sector. We’ll tell you all about it below!
Xiaomi on wheels
In April 2024, almost exactly a year ago, Xiaomi began delivering its first electric vehicle. Just a few months later, it was already approaching the top 10 of the best-selling electric cars in China, one of the most competitive markets in the world. By the end of the year, the brand had delivered more than 200,000 vehicles, proving that this move wasn’t just a whim, but a well-planned strategy, and that not everything came down to luck or chance.
Lei Jun, CEO of Xiaomi, was clear from the start: entering the electric sector wouldn’t be easy or cheap. But the numbers support his decision. In 2024 alone, the company increased its net profit by 41%, and the automotive business already represents 10% of total revenue.
The model that threatens Tesla
The main star of this story is the much-talked-about Xiaomi SU7 Ultra, an electric car that promises performance similar to the Porsche Taycan, but at one-third of the price. How could it not grab the entire market’s attention? The hype was such that the entire production planned for 2025 sold out in just three days, with over 10,000 units sold and nearly 19,000 reservations registered.
This success positions Xiaomi not just as another manufacturer, but as a true rival to brands that previously dominated the high-end market, like Tesla. Is Musk trembling while watching Xiaomi fight to reach the number one spot in the market?
Money invested doesn’t scare them
As we said at the beginning of this article, Xiaomi invested 800 million dollars in its first year. For anyone (who doesn’t know exactly how many zeros are in 800 million), it would be worrying, but, as the saying goes, nothing ventured, nothing gained. It was enough to look at the context of this vehicle to know that the investment was going to bear fruit very soon. Production levels, planned expansion, and generated demand, everything was taken into account before diving into a pool that seemed empty.
Xiaomi wasn’t looking for immediate profits, but rather to gradually establish itself as a global reference. And it has succeeded.
Tesla vs. Xiaomi: the market battle
The numbers speak for themselves, and Xiaomi’s SU7 is more than ready to face an epic battle against Tesla’s Model Y, Musk’s best-selling vehicle in China. In fact, Tesla must be shaking a bit, as it’s already working on a more affordable version of its model to protect its market share. Are there twists and turns coming in China’s electric vehicle sector?
Well, this is just the beginning.