In a surprising twist, Ford Motor Company CEO Jim Farley has publicly expressed his admiration for the Xiaomi Speed Ultra 7 (SU7), a Chinese-made electric vehicle he has been driving for the past six months.
Farley shared his enthusiasm during an appearance on “The Fully Charged Podcast,” revealing his reluctance to part with the SU7, which he drove all the way from Shanghai to Chicago. He commended the car’s performance and its strong market reception. “They sell 10,000, 20,000 a month. They’re sold out for six months,” he remarked, highlighting the SU7’s popularity.
However, despite this success, Xiaomi’s EV division faces financial hurdles. The company reported an adjusted loss of $252 million from its EV operations in the second quarter, translating to an approximate loss of $9,200 per unit for the 27,307 SU7s shipped during the period.
A Xiaomi spokesperson attributed these losses to the significant investment made in their first EV, a pure electric sedan. They stated the company is focusing on scaling operations to reduce production costs and offset these initial expenses.
Farley’s admiration for the SU7 comes at a particularly sensitive time, with the United States considering a potential ban on Chinese-made vehicles equipped with key communication and automated driving systems, citing national security concerns. The US Commerce Department’s proposal could effectively bar nearly all Chinese cars from the American market, escalating tensions between the two nations.
Xiaomi has already made significant strides in the EV market. The company launched its first EV, the SU7 sedan, in late March and commenced deliveries in April. By the end of the second quarter, Xiaomi had delivered over 27,000 units, closely trailing Chinese EV startup XPeng, which delivered 30,207 vehicles in the same period. Xiaomi’s EV business generated revenue of 6.2 billion yuan ($0.87 billion) in the quarter.
The combination of Farley’s praise for a Chinese EV, the potential US ban, and Xiaomi’s financial challenges creates a complex and evolving landscape in the global automotive industry. It remains to be seen how these factors will play out in the coming months and years.