Xiaomi stock surges after debut EV launch

STORY: Xiaomi shares soared Tuesday in their first day of trade since the firm launched its debut electric vehicle.

The stock gained as much as 16%, adding $7.6 billion to the company’s market value.

It comes days after the SU7 sedan launched with an eye-catching price tag.

Starting from just under $30,000, it’s cheaper than the competing Tesla Model 3 in China.

Consumers appear to have taken note, with Xiaomi reporting almost 89,000 orders in the first 24 hours on sale.

Analysts have concerns, however, noting that the firm expects to make a loss on every one of the cars.

Some predict the deficit could be as much as $10,000 per vehicle.

One reason is that the SU7 makes its appearance amid a fierce price war.

Rivals including Xpeng and Huawei-backed Aito announced they were making fresh price cuts following its launch.

Analysts at Citi say “everyone could be a loser” now in that segment of the market.

But Xiaomi has deep pockets, vowing to invest $10 billion in autos over the next decade.

Better known as a phone maker, it also boasts expertise in smart dashboards - a feature highly prized by Chinese buyers.

Company founder Lei Jun says making a success of the car business is the “last major entrepreneurship project” of his life.