Xiaomi’s EV Push Pays Off: SU7 Sales May Power Break-Even In H2

Chinese smartphone maker and EV entrant Xiaomi Corp expects its electric vehicle division to turn profitable in the second half of 2025, founder and CEO Lei Jun said at an investor event Tuesday, citing momentum from its SU7 sedan. 

Xiaomi’s U.S.-listed ADRs (XIACY) rose 2.4% to $34.08 on Tuesday, while its OTC shares (XIACF) climbed 2.7% to $6.85.

The update comes as the company prepares to launch its second model, the YU7 SUV, in July.

While the EV unit posted a 500 million yuan ($69M) loss last quarter, narrowing from 700 million yuan previously, strong SU7 sales have supported optimism, according to a Bloomberg report.

The sedan has outsold Tesla’s Model 3 in China every month since December, with 136,854 units delivered in 2024 and a 2025 target of 350,000.

The YU7, unveiled as part of Xiaomi’s 15th anniversary celebrations, is expected to compete directly with Tesla’s Model Y. 

Jun compared both models during the presentation, though pricing details are yet to be disclosed.

The profit forecast comes as China’s EV sector faces pressure from BYD's steep price cuts and warnings from state media over “rat-race” competition. 

Despite that, Xiaomi is doubling down on its EV ambitions, even as smartphones and home appliances remain its financial backbone.

On Stocktwits, retail sentiment was ‘bullish’ for XIACY amid ‘normal’ message volume, while XIACF drew a ‘bearish’ tone amid ‘high’ message volume.

Xiaomi's U.S.-listed ADRs have surged 56.1% year-to-date to $34.08, while OTC shares have gained 54.6% to $6.85.

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