Xiaomi’s stock jumps 16% after launch of electric car

Xiaomi’s first electric vehicle SU7 is displayed at a showroom of a newly opened Xiaomi store in Beijing, China March 25, 2024. REUTERS/Tingshu Wang/File photo

HONG KONG — Shares of China’s Xiaomi surged as much as 16-percent on Tuesday after the maker of smartphones and other consumer electronics last week launched a sporty electric vehicle whose design has been likened to Porsche’s Taycan and Panamera sports car models.

Xiaomi shares touched their highest since January 2022 on the first day of trading after the Easter holiday break and the first since it launched its first-ever vehicle.

On Thursday, Xiaomi launched its standard SU7 model priced at 215,900 yuan ($29,870), while the Pro and Max versions will cost 245,900 yuan and 299,900 yuan, respectively.

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The launch fulfills the ambition of Xiaomi’s founder, Lei Jun, who announced the company’s foray into EVs in 2021, pledging to invest $10 billion in the company’s auto business as “the last major entrepreneurship project” of his life.

Xiaomi has advised potential buyers of its SU7 electric sedan that they could face waits of four to seven months, a sign of strong demand for its first-ever vehicle.

As part of the campaign to kick off sales, Xiaomi released two special versions of the car called “Founder’s Edition” that come with complimentary gifts, such as refrigerators. The first 5,000 of those cars sold out immediately.