On Wednesday, when deliveries of the SU7, a sporty electric vehicle manufactured by Chinese smartphone firm Xiaomi, began, the company said that it had received over 100,000 orders.
Xiaomi's car officially debuts, the real revolution in smart cars has officially begun, and China will surely give birth to a great company like Tesla," founder and CEO Lei Jun stated during a ceremony in Beijing celebrating the first deliveries.
The first 5,000 vehicles will be issued by Xiaomi from a special run they dubbed the "Founder's Edition," which comes with exclusive extras for those who purchase their vehicles early.
In response to the SU7 (Speed Ultra 7) debut last week, Xiaomi warned that car purchasers may have to wait four to seven months for their orders, indicating strong demand.
On Tuesday, Xiaomi's stock price soared by as much as 16% due to the SU7's high demand, but a brokerage predicted the company would lose around $10,000 per vehicle this year. While the Hang Seng Index as a whole down 1.1% on Wednesday morning, its stock fell more than 3%.
The company's greatest valuation on Tuesday was $55 billion, based on a share price of HK$17.34; this was more than the $52 billion and $53 billion, respectively, of more established American manufacturers General Motors and Ford.
With a starting price of less than $30,000—less than Tesla's Model 3 in China—the Xiaomi SU7 joins the competitive Chinese electric vehicle market.
Although new entrants face stiff competition in the world's largest auto market from established players in the electric vehicle (EV) industry, analysts claim that Xiaomi has more capital on hand and an advantage in smart dashboards, a feature highly valued by Chinese consumers.
The sale of cellphones accounts for the bulk of the company's $37.5 billion in sales. As "the last major entrepreneurship project" of his life, Lei announced the company's venture into electric vehicles in 2021 and promised to invest $10 billion in the auto industry. The SU7 debut fulfills his objective.
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