The information that Xiaomi is developing its first electric vehicle has led to an increase in the company’s shares, and also forced representatives to make a short statement on the matter.
Under the influence of the news, shares of the Hong Kong-based company Xiaomi Group rose 11.81% and then declined slightly. At the close, Xiaomi shares surpassed the HK $ 30 mark, up 6.42%.
According to someone familiar with the matter, the project is directly led by Xiaomi founder and CEO Lei Jun. The company did not comment on these rumors yesterday, but today, in response to media inquiries, said that we should wait to see for ourselves.
A source close to Xiaomi believes the company has no reason to build its own vehicle. First, Xiaomi still has plenty of opportunity in the smartphone market amid a significant decline in Huawei’s market share.
Secondly, Xiaomi has no experience in autonomous driving and the automotive industry in general. Xiaomi’s expertise in smartphone manufacturing will not be enough to create an electric vehicle, so other companies will need to be involved. Finally, the source believes that the company could, in the best case scenario, release its electric car no earlier than 2025, when the market will already be divided by large car companies.
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