Rapid EV Growth Lifts Xiaomi After Three-Day Stock Drop

Xiaomi’s U.S.-listed shares recovered on Tuesday after a three-day decline, following the release of a strong quarterly update from its electric-vehicle division. The company reported that its EV business achieved its first operating profit and is rapidly approaching its annual delivery objective, despite having entered the automotive sector less than two years ago. The stock edged up 0.2% to $26.75, rebounding from a seven-month low touched on Monday, which had been triggered by Barclays’ decision to lower its price target to $40 from $43 ahead of Xiaomi’s third-quarter results.

During the earnings call, Xiaomi announced that its Smart EV, AI and new initiatives segment generated an operating profit of 700 million yuan in the third quarter, supported by expanding sales of the SU7 series and higher factory productivity. The company delivered 108,796 vehicles in Q3, bringing the nine-month total to 265,967 units. October was particularly strong, with deliveries exceeding 40,000, placing Xiaomi on track to meet, and potentially surpass, its full-year target of 350,000 vehicles as early as this week. The firm noted that wait times for the SU7 Pro and Pro Max have eased thanks to production upgrades and smoother supply chains, and output for both models continues to increase. The company anticipates further delivery growth through 2026.

Xiaomi emphasized its rapid ascent in the automotive sector, pointing out that it has been selling vehicles for only about 18 months while steadily increasing volumes through improved product quality and accelerated production cycles. By September, the company operated 402 EV showrooms in 119 cities and maintained 209 service centers across 125 cities in Mainland China.

Autonomous driving remains central to Xiaomi’s long-term EV roadmap. Its latest vehicles employ LiDAR systems enhanced by major expansions in training data, which the company says has strengthened performance. Xiaomi is also integrating its MiMo AI models, including multimodal and language-based systems, to advance autonomous driving and elevate in-car intelligence. While prioritizing scale over margins, the company expects efficiency gains to sustain healthy gross margins and mitigate pressures from subsidies and vacancy taxes. Xiaomi’s U.S.-listed shares remain down 22% year-to-date in 2025.