Xiaomi's Two-Speed Engine: EV Deliveries Surge While Chip Costs Cloud the Core Business
Published on 08/05/2026 at 08:02 | Redaktion boerse-global.de
The numbers coming out of Xiaomi's electric vehicle division keep getting harder to ignore. July marked the fourth consecutive month that the company shipped more than 30,000 cars, bringing the first-half 2026 total to 185,055 units. That puts the automaker at roughly 34 percent of its 550,000-vehicle annual target — a pace that demands a meaningful acceleration in the back half of the year, but one that nonetheless confirms production is scaling with growing reliability.
The next catalyst is already in the pipeline. Late July saw the unveiling of the "SkyNomad" series, a pair of extended-range electric SUVs — the N70 Max and N90 Max — with deliveries slated to begin in September. That timing means the new lineup won't show up in the ledger until the third-quarter numbers, leaving investors to weigh its potential against more immediate concerns.
A Product Blitz on Two Fronts
The EV momentum arrives alongside a busy smartphone schedule. Xiaomi launches the Redmi Note 17 5G in India on Thursday, a release widely viewed as a test of the company's revised South Asia strategy. The approach marks a deliberate shift away from volume-driven sales toward higher-priced devices with premium specifications — a bid to steady margins in the core handset business. The new model is expected to pack an 8,000-mAh battery.
China gets its own flagship moment on August 11, when the Redmi K100 Pro debuts with Qualcomm's Snapdragon 8 Elite Gen 5 V-chip and a display boasting a 185 Hz refresh rate. A special edition dubbed "Firefly Chasing Light" features a fluorescent rear panel that glows in the dark — a reminder that Xiaomi still knows how to generate buzz, even as its cost structure comes under scrutiny.
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The Cost Squeeze Splits the Analyst Community
That scrutiny will come to a head on August 18, when Xiaomi releases its unaudited second-quarter results. The analyst consensus points to earnings per share of 0.225 renminbi on revenue of roughly 116.84 billion renminbi — a substantial jump from the first quarter's 99.1 billion renminbi in sales and 6.1 billion renminbi in adjusted net profit, which came with a 22.0 percent gross margin.
The disagreement lies in what those numbers will reveal beneath the surface. CICC expects a sequential decline in both revenue and profit, attributing the softness primarily to rising component prices. Memory chips and other parts have grown more expensive, squeezing the smartphone and consumer electronics divisions.
UBS offers a more nuanced read. The Swiss bank acknowledges the near-term margin pressure but sees room for a positive surprise in the upcoming print. Both houses agree the cost side is a genuine headwind — the question is whether Xiaomi's operational execution can offset it.
A Stock Stuck at the Ceiling
The market's ambivalence shows up clearly in the chart. Xiaomi shares closed Tuesday at 3.13 euros, up modestly on the day, though the secondary source records a slightly different close of 3.12 euros with a marginal decline. Either way, the stock has spent weeks bumping against the same ceiling. The 100-day moving average sits near 3.21 euros, a level that has repelled multiple breakout attempts.
The recent recovery is real — a 20.19 percent gain over the past month has clawed back earlier losses — but the longer-term picture remains fragile. The share price still trades 15.50 percent below its 200-day average, a gap that signals the broader downtrend hasn't been broken. The relative strength index stands at 53, a neutral reading that leaves room for movement in either direction.
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A decisive push above 3.21 euros could open the door to a genuine trend reversal. Another rejection, by contrast, risks a pullback toward the 50-day average at 2.91 euros.
One Date, Two Narratives
The August 18 earnings release thus serves as the convergence point for two competing stories. On one side sits an EV business that has validated its growth trajectory for months and gains a new product line in September. On the other stands a core handset operation wrestling with input-cost inflation and a margin outlook that has analysts split.
UBS has flagged the two metrics that will likely decide the stock's next move: the operating margin in the EV segment and the smartphone margin in a difficult chip environment. Both figures will determine whether Xiaomi finally clears that stubborn resistance level — or remains trapped beneath it.
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