Xiaomi’s $4 Billion Buyback Fails to Halt 39% Slide as EV Losses Deepen and New SUV Enters a Shrinking Niche
21.06.2026 - 13:16:10 | boerse-global.de
Xiaomi’s stock closed the week at €2.72, scraping the 52-week low and extending its year-to-date decline to roughly 39%. The market has shrugged off the company’s latest share-repurchase tranche of HK$4 billion, part of a colossal HK$20 billion buyback programme. With the electric-vehicle unit burning through cash and smartphone margins under siege, the buyback offers scant support for the battered equity.
The EV division is the biggest drain. In the first quarter, it posted an operating loss of 3.1 billion yuan, equating to a loss of around US$5,600 per vehicle delivered. Monthly deliveries have started to slip: May saw just under 33,000 cars roll off the line, an 11% drop from April. That puts the full-year target of 550,000 units in serious jeopardy. Between January and May, total deliveries amounted to roughly 150,000 vehicles, meaning the company needs to average about 57,500 units each month from June through December — well above its previous monthly record of 50,000.
The core smartphone business is also weakening. First-quarter revenue fell to 99.1 billion renminbi, while adjusted net profit crashed 43%. The smartphone segment’s gross margin shrank to a wafer-thin 10.1%, squeezed by rising costs for memory chips. The combined pressure from EV cash burn and shrinking hardware profitability has soured investor sentiment.
To stem the bleeding, Xiaomi is pushing into new territory. Chinese regulators have approved the company to produce vehicles with range extenders — a first for Xiaomi, which until now made only pure battery-electric cars. The new sub-brand is called Skynomad, and its debut model, codenamed Kunlun N3, is a full-size SUV stretching over 5.3 metres. Its battery is expected to deliver a pure-electric range of up to 500 kilometres. Xiaomi plans to price it aggressively at around 200,000 yuan, undercutting comparable models from Li Auto, which usually start above 250,000 yuan.
Should investors sell immediately? Or is it worth buying Xiaomi?
The timing, however, is tricky. In May, sales of range-extender hybrids across China tumbled nearly 25% — the steepest monthly drop in five years. Even market leader Li Auto is feeling the heat, and Xiaomi is entering a segment that is suddenly losing momentum.
Away from the automotive drama, Xiaomi is refreshing its software platform. HyperOS 4, based on Android 17 and rewritten from the ground up in the Rust programming language, promises deeper AI integration and improved privacy protections. The rollout will begin in China this summer, with a global launch expected in October. The operating system is a rare bright spot, but it alone won’t lift the stock.
On the charts, the shares look deeply oversold, with the relative strength index reading just 26.3. The management is ploughing around 40 billion renminbi into research and development this year, betting on long-term innovation. Yet the immediate test comes on August 26, when Xiaomi reports second-quarter earnings. Goldman Sachs expects adjusted net profit to tumble 50% year-on-year.
Xiaomi at a turning point? This analysis reveals what investors need to know now.
Until delivery numbers show a clear turnaround, the buyback programme remains the only cushion against further lows. The new Skynomad SUV may be a bold move, but it enters a cooling market — and the clock is ticking on the 550,000-unit target.
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