Chinese smartphone company Xiaomi’s electric vehicle venture is surpassing expectations. As of April 20th, the company has received over 70,000 orders for its SU7 electric sedan, approaching its initial target for the entire year. CEO Lei Jun has announced an upward revision, aiming to deliver 100,000 units in 2023.
Xiaomi’s SU7, priced approximately $4,000 below Tesla’s Model 3, has been well-received by consumers. The company has begun deliveries and plans to release a car update during the Beijing auto show on Thursday.
Analysts at Citi have raised their earnings per share forecast for Xiaomi by 25% this year, expecting the company to deliver 100,000 cars in 2023, 200,000 in 2024, and 280,000 in 2026.
Despite selling the SU7 at a loss, Lei estimated a gross profit margin of 5% to 10% for Xiaomi’s auto business. The company is in discussions with suppliers to increase production capacity and reduce costs.
Xiaomi’s focus remains on the domestic market for the next three years, but it has plans for a new electric SUV scheduled for release in the second half of 2025.
