Xiaomi's Electric Car Journey: From Hot Demand to Financial Challenges

 1. The SU7 Electric Sedan:

- Xiaomi, the world's largest phone maker, entered the electric vehicle (EV) market with its SU7 electric sedan in March 2024.

- Designed by former BMW designer Chris Bangle, the SU7 quickly gained popularity, amassing 120,000 orders within the first 36 hours of its launch.

- Despite the initial success, Xiaomi faced significant financial losses:

  - In its first full quarter of customer deliveries (April through June 2024), Xiaomi sold 27,207 electric cars.

  - The company reported a total loss of $252 million, translating to approximately $9,200 per vehicle.

  - Remarkably, this loss per vehicle is significantly lower than that of other players like Ford and Rivian.

 2. Comparative Losses:

- Xiaomi's $9,200 loss per car contrasts sharply with:

  - Rivian, which recorded a $32,000 loss per vehicle during the same period.

  - Ford's staggering $1.1 billion loss ($47,600 per electric vehicle) in April, May, and June 2024.

- Ford's losses prompted a reevaluation of its approach to emerging technology, while Xiaomi remains committed to its EV journey.

 3. Second Model on the Horizon:

- Xiaomi's strategy includes focusing on its home market (China).

- The company aims to achieve profitability when it reaches annual sales of 300,000 to 400,000 vehicles (around 75,000 to 100,000 per quarter).

- If successful, Xiaomi would become the fifth most popular brand in China based on last year's sales.

- An SUV model, slightly larger than the SU7 sedan, is set to be unveiled in October 2024.

 4. No Global Expansion Yet:

- Xiaomi has ruled out expansion beyond China until around 2027.

- Australian showrooms won't see Xiaomi cars anytime soon.

In summary, Xiaomi's electric car journey combines impressive demand, financial challenges, and a promising second model on the horizon.