The unveiling of Xiaomi¡¯s first electric SUV on Thursday will showcase how the Chinese tech company has become an investor darling with its high-stakes bet on the auto market.
Shares of the firm founded by billionaire Lei Jun are within striking distance of a fresh record in Hong Kong after a 64% surge this year. Now valued at $187 billion, Xiaomi is worth more than Chinese EV leader BYD as it grows its footprint in the world¡¯s largest car market.
The new YU7, a direct competitor to Tesla¡¯s Model Y, may help it accomplish that goal. The SUV is a hallmark of Xiaomi¡¯s $10 billion EV strategy as larger vehicles gain popularity across China. It also signifies a deeper shift in Xiaomi¡¯s business model, offering consumers the ability to sync key aspects of their daily lives. That combined ecosystem is what some investors are saying will cement its place as a leader in China¡¯s trillion-dollar tech sector.
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