Xiaomi reports a 35% jump in revenue as CEO Lei Jun’s EV bet helps drive a 280% share rally

Xiaomi reports a 35% jump in revenue as CEO Lei Jun’s EV bet helps drive a 280% share rally

  • 18.03.2025 19:51
  • msn.com
  • Keywords: Xiaomi, Apple, Samsung, Tesla, BYD

Xiaomi reported a 35% revenue increase in 2024, driven by its EV division, which contributed over $4.5 billion despite only being operational for a year. The company's shares surged 280%, outpacing peers in Hong Kong, as its EV strategy boosted brand image and smartphone sales.

Apple ReportsXIACYsentiment_satisfiedAAPLsentiment_dissatisfied

Estimated market influence

Xiaomi

Xiaomi

Positivesentiment_satisfied
Analyst rating: Strong buy

Xiaomi's EV division contributed significantly to revenue growth and market expansion.

Apple

Apple

Negativesentiment_dissatisfied
Analyst rating: Buy

Apple's delay in releasing the Apple Car affected Xiaomi's decision-making, but ultimately didn't impact Xiaomi's success.

Context

Business Insights and Market Implications

Key Financial Performance

  • Xiaomi reported 365.9 billion yuan ($50.6 billion) in 2024 revenue, a 35% year-over-year increase.
  • Adjusted net profit for 2024 was 27.2 billion yuan ($3.8 billion), up by 41%.
  • EV division contributed 32.7 billion yuan ($4.5 billion), accounting for ~10% of total revenue.

EV Market Expansion

  • Xiaomi sold more cars in its first year as an EV maker than established EV startups.
  • 2025 delivery target increased to 350,000 units, up from 300,000 previously.
  • Plans to launch a new electric SUV in summer 2024, competing with Tesla’s Model Y.

Investment and R&D

  • Spent 24.1 billion yuan ($3.3 billion) on R&D in 2024, primarily for EVs.
  • Plans to increase R&D investment to ~30 billion yuan ($4.2 billion) in the coming year.

Stock Performance and Market Sentiment

  • Xiaomi shares surged by 280% over the past 12 months, outperforming the Hang Seng Index.
  • The company’s successful EV strategy has enhanced its brand image, boosting smartphone sales.

Global and Domestic Impact

  • Xiaomi remained China’s second-largest phone maker in Q4 2023, with a 17.2% market share.
  • Chinese tech companies are expanding into new overseas markets, particularly Southeast Asia and the Middle East.

China Tech Sector Rally

  • Hang Seng Tech Index is up 40% year-to-date, driven by investor confidence in China’s innovation sector.
  • BYD shares hit a record high after announcing a 5-minute full charge for its EVs.

Government Support and Regulatory Environment

  • Investors expect more government support amid U.S. tariffs and economic challenges.
  • Positive signals from Beijing, including President Xi Jinping’s engagement with tech leaders, suggest reduced regulatory pressure on the sector.

Competitive Dynamics

  • Xiaomi is challenging established players like Tesla and Apple in the EV market.
  • The company’s aggressive R&D investment and rapid scaling position it as a key player in the global EV race.

Long-Term Effects and Strategic Considerations

  • Xiaomi’s diversification into EVs has strengthened its brand image and opened new revenue streams.
  • The success of its EV division may drive further innovation and expansion in both domestic and international markets.
  • The company’s ability to sustain growth in a competitive EV landscape will be critical for long-term success.