Xiaomi Rushes $4 Billion Buyback to Arrest Stock Slide as New EV Brand Enters Shrinking EREV Market
20.06.2026 - 12:56:35 | boerse-global.de
Xiaomi has activated an automatic share repurchase programme worth up to HK$4 billion, deploying a fresh tranche from a larger HK$20 billion buyback plan as the stock languishes near its 52-week low. The move comes just as the company secures regulatory approval for a second electric-vehicle brand, Skynomad, in a segment that is rapidly contracting.
The Chinese smartphone and EV maker's shares closed at €2.72 on Friday, barely above the year's trough of €2.67. The stock has shed almost 40% of its value since January, pushing the relative strength index to 26.3 — a level that typically signals extreme oversold conditions. The 200-day moving average sits at €4.15, meaning the current price is more than a third below that long-term trend line.
Under the buyback, an independent broker will execute purchases on the Hong Kong exchange beginning 19 June, with a special exemption from the city's securities regulator allowing Xiaomi to buy shares even during blackout periods, such as the weeks before quarterly earnings announcements. The programme runs until the end of December 2026 or until the HK$4 billion cap is reached, whichever comes first. Analysts view the measure primarily as price support, though they caution that a lasting turnaround will require operational catalysts from the smartphone and EV arms.
Should investors sell immediately? Or is it worth buying Xiaomi?
On the automotive front, China's Ministry of Industry and Information Technology has greenlit Xiaomi to produce extended-range electric vehicles. The company is expected to launch its second car brand, Skynomad, targeting family buyers with a full-size SUV codenamed Kunlun N3. The vehicle measures over 5.3 metres in length, packs a battery larger than 70 kWh, and offers a pure-electric range of 400 to 500 kilometres. Pricing is set at roughly 200,000 yuan (€26,000), significantly undercutting rivals such as Li Auto and Aito, whose models typically start above 250,000 yuan. Xiaomi aims for an official launch in the second half of 2026. The brand separation is deliberate: selling large family SUVs under the main Xiaomi name could dilute its sporty, high-tech image, so Skynomad allows the company to pursue a different demographic without alienating core customers.
The timing, however, is problematic. Wholesale sales of EREV models tumbled nearly 25% in May — the steepest monthly drop in five years — dragging their market share to 7.0%. Even segment leader Li Auto saw deliveries of its flagship L9 plunge 74% year-on-year in the first four months of 2026. Li Auto and Huawei-backed Aito together accounted for seven of the ten best-selling EREV SUVs in 2025, and now Xiaomi is entering that crowded, shrinking arena.
Meanwhile, the delivery gap for Xiaomi’s existing EV line-up continues to widen. In the first five months of 2026, the company handed over 150,317 vehicles, a year-on-year increase of 13.5%. To hit its full-year target, however, it would need growth of 34%. May deliveries of 32,759 units were up 17% from a year earlier but down 10.7% from April. Jefferies has responded by slashing its forecast to 495,000 units and reducing the valuation multiple on Xiaomi’s EV division from 2.2x to 1.5x of projected 2026 revenue. The EV unit posted an operating loss of 3.1 billion yuan in the first quarter.
Xiaomi president Lu Weibing has promised a new model on an entirely new platform in the second half of 2026. But the gap between regulatory approval and serial production typically spans months. Whether the Kunlun N3 will roll off the line in meaningful volumes this year — and whether it can help salvage the company’s annual delivery goal — will become clearer in the coming weeks. For now, the stock continues to trade within a whisker of its low, supported only by the buyback’s mechanical demand.
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