{"id":76012,"date":"2024-08-22T12:03:54","date_gmt":"2024-08-22T16:03:54","guid":{"rendered":"http:\/\/autosector.com\/?p=76012"},"modified":"2024-08-22T12:03:54","modified_gmt":"2024-08-22T16:03:54","slug":"xiaomi-says-it-lost-9200-for-each-30000-speed-ultra-7-it-delivered","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=76012","title":{"rendered":"One of China&#8217;s hottest new EV makers says it lost $9,200 for each $30,000 smart car it delivered &#8211; Autoblog"},"content":{"rendered":"<ul class=\"summary-list\">\n<li>Tech firm and new EV maker Xiaomi revealed just how much cash it&#8217;s burning to make its cars.<\/li>\n<li>The tech firm&#8217;s EV branch lost about $252 million from April to June, or $9,200 per car.<\/li>\n<li>Xiaomi has only one car, the Speed Ultra 7, but it holds ambitious plans to expand its range of smart vehicles.<\/li>\n<\/ul>\n<p>Chinese tech giant Xiaomi, known for making smartphones, turned heads in March when its <a class=\"\" href=\"https:\/\/www.businessinsider.com\/china-xiaomi-launch-electric-car-apple-failed-tesla-2024-3?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:0;\">maiden electric vehicle<\/a> sold out with almost 90,000 preorders within a day of launch.<\/p>\n<p>Its new auto branch posted an adjusted loss of $252 million for the second quarter ending June 30 \u2014 its first-ever full delivery quarter, the company said in its <a class=\"\" href=\"https:\/\/ir.mi.com\/system\/files-encrypted\/nasdaq_kms\/assets\/2024\/08\/21\/5-44-48\/Announcement.pdf\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:1;\">unaudited results filed on Wednesday.<\/a><\/p>\n<p>That&#8217;s despite Xiaomi saying it&#8217;s on track to smash its target of 100,000 deliveries of its first car, the <a class=\"\" href=\"https:\/\/www.businessinsider.com\/phonemaker-xiaomi-unveils-first-ev-taking-on-tesla-2023-12?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:2;\">Speed Ultra 7<\/a>, by November.<\/p>\n<p>The new <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/electric\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:3;\">electric vehicle<\/a> maker said it delivered 27,307 SU7s in the second quarter, meaning that, on average, it lost $9,200 for each car. The base price of the SU7 is 215,900 yuan, or about $30,000.<\/p>\n<p>That&#8217;s not to say that Xiaomi loses more money when it delivers more cars: The firm reported a higher-than-anticipated gross profit margin of 15.4%.<\/p>\n<p>Yet it&#8217;s signaled for a while that its auto segment would take time to break even, with <a class=\"\" href=\"https:\/\/www.scmp.com\/business\/china-business\/article\/3258134\/xiaomis-maiden-ev-selling-loss-turbocharges-price-war-forcing-chinas-small-players-out-business\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:4;\">CEO Lei Jun mentioning in April<\/a> that the car was selling at at a loss, though he didn&#8217;t say by how much.<\/p>\n<p>Citibank analysts <a class=\"\" href=\"https:\/\/www.cnbc.com\/2024\/04\/24\/chinas-xiaomi-is-selling-so-many-electric-cars-its-closer-to-breaking-even.html#:~:text=%E2%80%9CBreakeven%20would%20be%20realized%20if,a%2010%25%20loss%20previously%20expected.\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:5;\">wrote in a report at the time<\/a> that they expected Xiaomi to turn a profit only after hitting annual sales of 300,000 to 400,000 vehicles. They forecast sales of 260,000 cars in 2026.<\/p>\n<p>Xiaomi operates one EV factory, which it built itself. Since June, it&#8217;s been running double-shift operations to <a class=\"\" href=\"https:\/\/www.businessinsider.com\/ev-china-electric-vechile-xiaomi-sees-apparent-demand-2024-4?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:6;\">push monthly deliveries past 10,000 cars.<\/a><\/p>\n<p>A company spokesperson told Business Insider that the firm is focusing on increasing the scale of its EV arm to narrow per-car costs.<\/p>\n<p>&#8220;The scale of Xiaomi EV business is relatively small at the moment, while the auto industry is a typical industry with economies of scale,&#8221; the spokesperson said.<\/p>\n<p>For comparison, competing Chinese EV maker BYD <a class=\"\" href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/chinas-byd-posts-21-jump-quarterly-ev-sales-closes-gap-with-tesla-2024-07-02\/\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:7;\">sold 426,039 cars<\/a> in the April-June quarter.<\/p>\n<p>Xiaomi&#8217;s spokesperson added: &#8220;In addition, Xiaomi&#8217;s first EV is a pure electric sedan, and its investment cost is relatively high, so it will take some time to digest this part of the cost.&#8221;<\/p>\n<p>Lei Jun, the billionaire cofounder of Xiaomi, <a class=\"\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-03-30\/xiaomi-is-said-to-plan-15-billion-foray-into-electric-cars\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:8;\">said in March<\/a> that he intended to pour &#8220;tens of billions of investment&#8221; over the next few years into building Xiaomi&#8217;s EV division and <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/category\/tech\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:9;\">car technologies<\/a>.<\/p>\n<p>The tech firm has long said its vision for the SU7 is to create a <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/smart\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:10;\">smart car<\/a> that rivals <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/elon+musk\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:11;\">Elon Musk&#8217;s<\/a> Tesla but is priced more in line with the average Chinese income.<\/p>\n<p>Xiaomi said customers are still coming in, with 13,000 more vehicles sold in the second quarter and July combined.<\/p>\n<p>Its ambitions for its EV range far, including self-driving and self-parking capabilities and an audio-based artificial intelligence assistant to be fully shipped this month.<\/p>\n<p>Overall, Xiaomi posted strong results for its second quarter, with sales across all its sectors rising 32% to 88.7 billion yuan compared to the same period in 2023.<\/p>\n<p>Net income also hit 5 billion yuan, up 38% from 3.6 billion yuan in the second quarter last year.<\/p>\n<p>The company said it plans to build a variety of EV models beyond the SU7 sedan but has not said what they will be.<\/p>\n<div class=\"read-original\">\n Read the original article on <a href=\"https:\/\/www.businessinsider.com\/xiaomi-loses-speed-ultra-7-electric-vehicles-9200-per-car-2024-8\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:12;\">Business Insider<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tech firm and new EV maker Xiaomi revealed just how much cash it&#8217;s burning to make its cars. The tech firm&#8217;s EV branch lost about $252 million from April to June, or $9,200 per car. Xiaomi has only one car, the Speed Ultra 7, but it holds ambitious plans to expand its range of smart [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":76013,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[],"class_list":["post-76012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/76012","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76012"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/76012\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/76013"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76012"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76012"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76012"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}