Emir Bardakçı
Investing.com recently reported that Goldman Sachs lifted the target share price of Xiaomi to HK$27.5 from HK$24.7 for a period of 12 months, buoyed by the company’s overestimated results in the EV market. The company has been gradually succeeding with its “people, cars, and houses” strategy, with promising results seen in both Chinese and global markets. Goldman Sachs attributes this growth to, among others, the success of Xiaomi’s EV division, mainly strong sales of models such as Xiaomi SU7. Goldman Sachs has once again reaffirmed its “buy” rating on Xiaomi’s stock, identifying a number of key upcoming milestones, including the release of the higher-margin Xiaomi SU7 Ultra and the unprecedented ramp of new EV models.
Key Estimates for Xiaomi’s EV Business
Goldman Sachs predicts the ultramodel SU7 of Xiaomi will sell 4,000 units in the next year at an average price of roughly RMB 800,000, which translates into about 5% of the company’s EV revenue. Total EVs delivered for Xiaomi are expected to be more than 225,000 units in 2025 alone, buoyed by strong demand from the SU7 and higher manufacturing capacity with Xiaomi ramping up production in its Phase I plant. Along with the SU7, the second electric model of Xiaomi is also likely to hit the market ahead of its schedule. Sales from the model are expected to reach 40,000 units next year, and go up to 210,000 units by 2026. The model is expected to take 44% of the company’s EV revenue by 2026.
In all, Goldman Sachs forecasts that the value of Xiaomi’s EV business will increase from US$12.7 billion to as high as US$18.5 billion in the next few years. Growth of the Mobile Phone Business of Xiaomi Other factors contributing to the growth for Xiaomi will surely be new releases of smartphones, in particular, from the series of Xiaomi 15. According to previous reports, the shipment volume of the Xiaomi 14 series was as high as 80% compared with its predecessor, which had set quite high expectations for the launch of the Xiaomi 15 series.
Xiaomi SU7 Ultra Prototype Unveiled
Recently, Xiaomi Group has unveiled the prototype of the Xiaomi SU7 Ultra at the Nürburgring Nordschleife in Germany. It boasts state-of-the-art technology: a full-carbon design and dual V8s and V6s all-wheel drive motors producing 1,548 horsepower. With its lightweight body, the SU7 Ultra accelerates from 0 to 100 km/h in just 1.97 seconds. The top speed of the car is above 350 km/h. High-performance versions officially attack the Nürburgring track this October, while mass-produced models come in the first quarter of 2025. Xiaomi continued adopting fresh approaches in both electronic vehicles and smartphones, thus helping to position the company as one of the leading players on the world stage.
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