Xiaomi's EV Unit Loses $5,600 Per Car as Annual Delivery Target Looks Increasingly Unattainable
19.06.2026 - 09:54:26 | boerse-global.de
Xiaomi's stock is clinging to the floor near its 52-week low of €2.67, closing Thursday at €2.72. The shares have shed approximately 39% since the start of the year, erasing the impact of a multi-billion-dollar buyback programme. The disconnect between the company's engineering spectacle on the Nürburgring and the brutal reality of its financial statements has never been wider.
The electric vehicle division, once touted as the company's next growth engine, is now its biggest cash incinerator. In the first quarter of 2026, the segment generated ¥19.9 billion in revenue but posted an operating loss of ¥3.1 billion. That equates to a loss of roughly $5,600 for every vehicle handed over to a customer. The gross margin in the automotive business has compressed to 20.1%, squeezed by price cuts on the SU7 Ultra, rising component costs, and lower volumes of the high-margin model. Government purchase tax subsidies have further dented pricing power.
May delivery numbers only added to the gloom. Xiaomi's EV division handed over 32,759 vehicles last month — an 11% drop from April. Cumulative deliveries for the first five months of 2026 stand at 150,317 units, a year-on-year increase of just 13.5%. The company's full-year target of 550,000 vehicles would require 34% growth over 2025. To hit that number, monthly run-rates must exceed 50,000 going forward — a level Xiaomi has achieved only once in its short automotive history.
Should investors sell immediately? Or is it worth buying Xiaomi?
Analysts are losing patience. Jefferies has downgraded the stock to "Underperform", citing shrinking margins and softening EV demand. Goldman Sachs expects second-quarter earnings to plunge by 50%. The bearish consensus is that the delivery goal is no longer credible without a dramatic acceleration in the second half.
In response, Xiaomi is pivoting to extended-range electric vehicles (EREVs). The company has secured Chinese regulatory approval for its first EREV model, codenamed "Kunlun N3" — a 5.3-metre SUV under the new Skynomad sub-brand. Priced at around ¥200,000, it undercuts rivals Li Auto and Aito by roughly ¥50,000 and targets families not drawn to the sporty SU7 and YU7. The combined range is expected to hit 1,500 kilometres. But the segment itself is struggling: May wholesale sales of EREVs fell nearly 25%, the steepest monthly decline in five years, slicing the category's market share to 7%.
Meanwhile, PR victories continue. An autonomous YU7 SUV reportedly set a driverless lap record at the Nürburgring, and a piloted YU7 GT already beat Audi's SUV benchmark. Such headlines do little to mask the operational strain. President Lu Weibing has confirmed a new model on an entirely new platform for the second half of 2026, alongside a refreshed SU7 with 902 km of range and two long-range SUV variants. Xiaomi plans to spend roughly ¥40 billion on research and development this year.
Technically, the stock is deeply oversold. The RSI sits at 26.4, and the price is trading about 34% below its 200-day moving average of €4.15. The June and July delivery figures will be the first real test of whether the volume upturn is achievable — or whether the 550,000-unit target is quietly abandoned.
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