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Automobile
Xiaomi to give Tesla a run for its money in China’s EV business
CKN
2021/05/04 02:53:20
4,371

May 04, 2021 (China Knowledge) - Xiaomi (1810) is looking to enter the Electrical Vehicle (EV) business, amidst great competition from Tesla (TSLA) as well as domestic competitors NIO (NIO) and XPeng (XPEV).

The Chinese tech giant has demonstrated their calibre among their competitors, after solidifying their position as the fourth-most valuable technology stock in Hong Kong. Their RMB 108 bln war chest will be able to prepare them for the initial outlay on the EV business as well as future developments.

Xiaomi is expected to generate an annual profit of RMB 20 bln, in which half of it will be re-invested into the EV business, with debt and equity financing a possible method to raise cash as well.

This goal is in line with China’s grand plan to reach peak carbon emissions by 2030 and to be carbon neutral by 2060. 

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