📈 Xiaomi Stock Soars 8% After YU7 EV Launch — What’s Next for Investors?

Xiaomi (HK: 1810) surged 8% in Hong Kong after launching its new electric SUV, the YU7, priced 4% below Tesla’s Model Y. Within 3 minutes of launch, Xiaomi recorded over 200,000 orders — a stunning signal of strong consumer interest and market potential.

Fundamentally, Xiaomi is transitioning from a mobile-device-centric company to a diversified tech ecosystem player — now encompassing IoT, smart homes, and EVs. Revenue growth in Q1 2025 rebounded thanks to recovering smartphone sales and IoT devices. The EV push could unlock a new long-term revenue pillar, especially in China’s growing NEV market.

From a value investing lens, Xiaomi remains attractively priced relative to its peers, with a P/E below 15 and a strong cash position. The firm’s vertically integrated supply chain and brand equity give it cost advantages in a competitive EV market. Long-term investors may see Xiaomi as a high-conviction compounder.

Technically, Xiaomi recently broke out from a multi-month resistance near HK$4.65 and has momentum on its side. If the HK$5.20 level holds, next resistance lies around HK$5.80–6.00. Volume and RSI indicate bullish continuation, though short-term consolidation is possible.

🚗 With strategic partnerships (BYD, GAC Toyota, Nissan) and a vision to connect homes, phones, and cars, Xiaomi is not just chasing trends — it’s shaping them.

PS: not financial advice and do your own research 

Aenon 🙏🫡🍀