Xiaomi CEO Predicts EV Business Break-Even by Late 2024
Xiaomi Chief Executive Lei Jun has announced that the company’s electric vehicle (EV) division is projected to achieve break-even status during the third or fourth quarter of this year. This optimistic forecast follows recent financial reports indicating robust growth in sales and a significant narrowing of losses. In the first quarter, Xiaomi’s smart EVs, AI, and other new businesses recorded a gross margin of 23.2%, while operating losses decreased from RMB 700 million to RMB 500 million compared to the previous quarter. During an investor conference, Lei also addressed market speculation regarding Xiaomi’s upcoming second EV model, the YU7. He denied rumors suggesting a July release date and a price point of RMB 235,900, though he declined to provide official pricing details. Previously, Lei confirmed that the standard version of the YU7 would offer a driving range of 835 kilometers. These developments highlight Xiaomi’s rapid progress in the competitive EV market as it transitions from heavy investment towards profitability, signaling a potential shift in the company’s overall financial trajectory.
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Xiaomi CEO Predicts EV Business Break-Even by Late 2024
Xiaomi Chief Executive Lei Jun has announced that the company’s electric vehicle (EV) division is projected to achieve break-even status during the third or fourth quarter of this year. This optimistic forecast follows recent financial reports indicating robust growth in sales and a significant narrowing of losses. In the first quarter, Xiaomi’s smart EVs, AI, and other new businesses recorded a gross margin of 23.2%, while operating losses decreased from RMB 700 million to RMB 500 million compared to the previous quarter. During an investor conference, Lei also addressed market speculation regarding Xiaomi’s upcoming second EV model, the YU7. He denied rumors suggesting a July release date and a price point of RMB 235,900, though he declined to provide official pricing details. Previously, Lei confirmed that the standard version of the YU7 would offer a driving range of 835 kilometers. These developments highlight Xiaomi’s rapid progress in the competitive EV market as it transitions from heavy investment towards profitability, signaling a potential shift in the company’s overall financial trajectory.
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