Xiaomi Bets on SkyNomad SUV to Offset Handset Slump as Buyback Buoys Stock

Xiaomi shares jumped 7.11% to €3.10 after a hefty buyback and SkyNomad SUV launch, but Q1 profit plunged 43.1% as chip shortage and smartphone slump pressure margins.

Xiaomi’s stock staged a dramatic single-day rally, climbing 7.11% to €3.10, as a hefty share buyback and the unveiling of a new SUV series briefly overshadowed deeper structural pressures. The Beijing-based tech giant has snapped up 79.8 million of its own shares since 3 June — roughly 0.31% of total equity — while simultaneously rolling out the SkyNomad range, a direct challenge to established players in China’s premium electric-vehicle segment. Yet beneath the surface, the numbers tell a sobering story: first-quarter adjusted net profit plunged 43.1% to 6.07 billion yuan, squeezed by a persistent memory-chip shortage that has hammered margins across the group.

The SkyNomad lineup, confirmed by a recent MIIT registration filing, comprises four variants: the flagship N90 Max, a camping edition of that model, and the smaller N70 and N70 Max. All are extended-range electric vehicles (EREVs), combining a 1.5-litre turbo engine with a battery pack in the 70–80 kWh range to deliver 400–500 kilometres of pure electric range and a combined range exceeding 1,500 kilometres. The N90 Max Camping Edition stands out with a pop-up roof, roof-bed platform, and side-tent interface — a deliberate pitch at China’s adventure-minded families. Xiaomi intends to showcase the new models at the Chengdu Auto Show in August, with a confirmed European launch pencilled in for 2027.

Price is the weapon of choice. Local media reports peg the SkyNomad starting price at around 200,000 yuan (roughly €23,000), undercutting Li Auto’s L9 and the Huawei-backed Aito M9, both of which sit above 250,000 yuan. Those two brands alone accounted for seven of China’s ten best-selling EREV SUVs in 2025. Xiaomi’s aggressive pricing aims to carve out a foothold in the family SUV segment, but it faces stiff competition. Xpeng’s MONA series starts at about 150,000 yuan, and Volkswagen plans to enter the fray with the ID.Cross from autumn 2026. Should consumer sentiment in China remain tepid, a price war could further compress margins.

The urgency behind the electric-vehicle push is clear from Xiaomi’s earnings. While revenue from EVs, AI, and other nascent ventures rose 6.9% year-on-year to 19.9 billion yuan in the first quarter, the core smartphone business — long the company’s cash cow — saw shipments tumble 19.2%. Research and development costs climbed 33.4% to 9 billion yuan, underscoring the heavy investment required to sustain the automotive pivot. Xiaomi has set an ambitious delivery target of 550,000 vehicles for 2026, a 34% increase from last year. So far, it has delivered 185,055 units in the first half, with three consecutive monthly runs above 30,000. Whether the SkyNomad can close that gap will be determined by order books at the August auto show.

Technical indicators paint a mixed picture. The stock has recovered roughly a quarter from its 52-week low of €2.34 reached in late June, and now sits 4.09% above its 50-day moving average of €2.97 — a faint signal of stabilization. The relative strength index of 66.7 suggests the rally is becoming stretched in the short term. More ominously, the shares remain 19.31% below the 200-day average of €3.84, and a staggering 55.60% below the 52-week high of €6.51 hit last September. The year-to-date loss stands at 31.06%.

Li Auto, Xiaomi’s primary rival in the EREV space, has not stood still. Deliveries of the outgoing L9 model slumped 74% in the first four months of 2026, but that was largely due to a production switch to the updated L9 Livis, which racked up over 10,000 firm orders within two weeks of its May launch. Group-wide, Li Auto delivered 162,577 vehicles in the first five months, a marginal year-on-year decline of 3.03%. The i6 electric SUV alone accounted for over 60% of Li Auto’s April deliveries. Xiaomi’s campaign to dethrone the segment leader will hinge on whether it can convert price advantage into volume without destroying profitability.

All eyes now turn to the Chengdu Auto Show, where Xiaomi is expected to reveal concrete pre-order figures and possibly a more detailed pricing ladder. Alongside the SkyNomad launch, the company plans to showcase HyperOS 4 software alongside the Xiaomi 18 series — a reminder that the smartphone business remains central to its ecosystem. Job postings for European sales operations offer another clue: the pace of hiring will signal how seriously the company is pursuing its 2027 global expansion. For now, the buyback provides a floor, but the path to a sustained recovery runs through August’s showroom floors.