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Delivery Of Its First EV Initiated By Chinese Smartphone Maker Xiaomi With An Order Book Of Over 100,000 EVs

Delivery Of Its First EV Initiated By Chinese Smartphone Maker Xiaomi With An Order Book Of Over 100,000 EVs
Since it started shipping on Wednesday, Xiaomi, a Chinese manufacturer of smartphones, has announced that it has received more than 100,000 orders for its debut automobile, the SU7, an electric sports car.
At a ceremony in Beijing to mark the first deliveries, CEO and creator Lei Jun declared, "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."
The initial deliveries are from a restricted run of 5,000 automobiles that Xiaomi had previously manufactured; these are referred to as the "Founder's Edition," and they come with extra extras for first-time purchasers.
As a sign of strong demand, Xiaomi warned customers of its car that they may have to wait four to seven months after the SU7, short for Speed Ultra 7, was introduced last week.
As the SU7 attracted a lot of interest, Xiaomi's shares shot up to 16% on Tuesday, but a stockbroker predicted the company would lose around $10,000 on each car this year. In contrast to the 1.1% decline in the overall Hang Seng Index, its shares saw a more than 3% decrease in trade on Wednesday morning.
The corporation was valued at $55 billion at its peak on Tuesday, when the share price was HK$17.34. This is more than the $52 billion and $53 billion of traditional American manufacturers, General Motors and Ford, respectively.
With an eye-catching price tag of less than $30,000 for the base model, Xiaomi's SU7 joins the congested China EV market at a lower cost than Tesla's Model 3.
While a fierce price war for electric vehicles and declining demand make the world's largest car market difficult for newcomers, analysts have noted that Xiaomi has larger resources than most EV companies and that its experience with smartphones gives it an advantage in smart dashboards, a feature that Chinese consumers highly value.
Tuesday saw a sharp decline in Tesla's stock price as the manufacturer of electric vehicles announced lower quarterly deliveries for the first time in almost four years.
The corporation sells cellphones for the majority of its $37.5 billion in revenue.
The SU7 debut satisfies Lei's goal, as he declared the company's entry into the electric vehicle market in 2021 and committed to investing $10 billion in the industry as "the last major entrepreneurship project" of his life.

Christopher J. Mitchell

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