A team of Goldman Sachs analysts, led by Timothy Zhao, raised their 12-month price target for Chinese EV-maker Xiaomi after its newly launched YU7 SUV garnered 200,000 preorders within minutes and nearly 300,000 in the first hour. The massive demand solidifies Xiaomi's position as a serious challenger to Tesla in the world's largest EV market.
At the launch event on Friday, founder Lei Jun positioned the YU7 against Tesla, echoing his past comparisons between Xiaomi's Mi phones and Apple's iPhone. The YU7 undercuts Tesla's Model Y in price, with a showroom price of 253,500 yuan ($35,360). The top-tier version offers a 760 km (472-mile) range, 800V fast charging, lidar-based driver assistance, and luxury features like massage chairs and oversized screens.
"We believe consumer demand for Xiaomi YU7 far exceeds our and market expectations (i.e., 150k orders within the first 24 hrs), which should enable Xiaomi to continue consolidating its leadership position in the premium auto market in China," Zhao wrote in a note on Friday morning.
Zhao raised his 12-month forward SOTP-based target price by 6% to HK$69 (up from HK$65) due to strong demand for the YU7. The analyst maintained a "Buy" rating on the stock.
Shares in Hong Kong closed up 3.6% on the day and are now up 71% year-to-date, breaking out into a blue-sky territory.
Xiaomi's auto division is expected to turn profitable by the second half of 2025, an unusually fast trajectory. The EV push comes despite regulatory scrutiny following a fatal SU7 crash and broader industry warnings from authorities over driver assistance software, ongoing EV price wars, and accounting practices.
Also unveiled were AI smart glasses, the MIX Flip 2 foldable phone, and a new tablet powered by Xiaomi's in-house chip, reinforcing Lei's ambition to make Xiaomi a global smart device powerhouse that will dominate the 2030s.
Where are the U.S. companies that match Xiaomi's full-stack business model? There are none.
It's time for America to wake up—because the 2030s won't be dominated by siloed tech giants. They'll belong to ecosystem-driven players like Xiaomi—companies that seamlessly integrate smartphones, wearables, smart homes, AI, and EVs under one roof. Let's not also forget drones, humanoid robots, space, ect.... Whoever controls that stack will shape markets, economies, and global influence. The clock is ticking.