The controversy surrounding the SU7 continues to escalate, causing Xiaomi's market value to evaporate by over HK$530 billion.
According to CBN, from September 25 to November 19, Xiaomi's stock price fell by 34.7%, wiping out more than HK$530 billion in market value. This loss exceeds the combined market value of electric vehicle companies such as NIO, Li Auto, XPeng, and Leapmotor during the same period (approximately HK$500 billion).
Xiaomi's stock price has fallen by approximately 36.83% from its year-to-date high of HK$61.45 on June 27 as of the closing on November 19.
On September 25, the company launched new products such as the 17 series. The following day, its stock price plummeted, with a single-day drop of 8.07%. In October, its market value evaporated by more than HK$280 billion, marking the largest single-month drop in the company's history.
The main reasons for the decline in Xiaomi's stock price include the numerous accidents involving electric vehicles this year. In March 2025, an SU7 caused a fatal accident on a highway, resulting in three deaths; in October, another SU7 caught fire in Chengdu, trapping the driver inside and preventing him from opening the door.
In September, the company announced a recall of 116,887 SU7 standard models because its Level 2 highway driver assistance system may not be able to recognize or respond adequately in extreme scenarios.
The delayed progress of factory construction and production is also one of the reasons for the stock price decline. The original plan was to increase annual production capacity to 300,000 vehicles after the second phase of the factory went into operation, but the ramp-up time has been delayed. Reportedly, October deliveries were only about 40,000 vehicles, almost the same as in September.
In addition, upstream cost pressures are increasing. Factors such as rising memory chip prices are squeezing profit margins. Investment bank Goldman Sachs lowered its target price for Xiaomi by more than 10% on November 1st.
These factors combined have led the market to become more cautious about Xiaomi's new energy vehicle business and its overall growth prospects.
Xiaomi, a tech giant that started with smartphones and consumer electronics, has rapidly entered the electric vehicle market since launching its automotive business in 2024. Its SU7 is considered its flagship model. However, with intensifying competition in the domestic EV market, safety incidents, recalls, and production delays have become "growing pains" that many new entrants must face. For Xiaomi, the profit model of its smartphone business is clear, while car manufacturers require long-term investment, resulting in heavy costs and high risks.
The rising prices of key components such as memory chips and power devices globally, coupled with the increasing reliance on software, sensors, and autonomous driving systems in new energy vehicle production, are putting pressure on automakers' profit margins. For companies that have recently transitioned to car manufacturing, the external pressures are particularly pronounced.
Editor in charge: Fang Xiao#
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