Xiaomi Pulls EV Discounts as Q1 Earnings Loom and a 1,000-HP SUV Prepares for Launch

Xiaomi ends SU7 incentives to boost output, unveils high-performance YU7 GT SUV, but faces expected Q1 profit plunge and stock decline.

The Chinese tech giant is sending mixed signals to the market. On one hand, Xiaomi is winding down generous introductory discounts on its SU7 electric sedan, streamlining production in its Beijing plant to accelerate output. On the other, it is gearing up to unveil its most powerful vehicle yet — the YU7 GT, a high-performance SUV packing around 1,000 horsepower — by the end of this month. The moves come just as the company prepares to report what analysts expect to be a sharp drop in first-quarter profit.

Xiaomi ended the SU7’s launch incentives on Wednesday, with buyers previously eligible for perks worth up to 69,000 yuan depending on the trim. The company is also thinning out the number of available variants. The rationale is clear: simplify manufacturing and boost throughput. The strategy appears to be working. In April, Xiaomi delivered more than 30,000 vehicles for the first time, bringing year-to-date deliveries to roughly 114,000 units. That puts the company within striking distance of its ambitious annual target of over half a million vehicles.

The production ramp is about to get a major shot in the arm. The YU7 GT — a battery-electric SUV with a top speed of 300 km/h, a range of up to 705 km, and all-wheel drive developed at Xiaomi’s Munich R&D center, which opened in March 2025 — is already stacking up in the factory. Its official debut is slated for late May, and it is expected to sit at the top of the model lineup.

Yet for all the operational momentum, the stock tells a different story. Xiaomi’s shares are trading at €3.33, down more than a quarter since the start of the year and roughly 27% below their 200-day moving average. The price has more than halved from its 52-week high of €6.69 and sits just 5% above its low of €3.17.

The disconnect stems largely from uncertainty over profitability. Analysts are split. Citigroup, which maintains a “Buy” rating, warned on May 4 that first-quarter adjusted net profit could undershoot market consensus by around 16%. The bank expects total revenue to fall 12% year-on-year to 98.4 billion yuan, with adjusted net profit plunging 45% to 5.9 billion yuan. Weak smartphone and IoT sales are the main culprits — handset revenue is seen dropping 14%, with shipment volumes down 19%. Margins in the EV segment are also under pressure as government purchase-tax subsidies begin to taper.

Bocom International takes a more optimistic view, arguing that recent efficiency gains will significantly improve Xiaomi’s cost structure and could deliver a positive earnings surprise.

The numbers will be settled soon. Xiaomi’s board is scheduled to approve the first-quarter results on May 26, with publication expected by the end of the month. A shareholder meeting will follow shortly after, where management is expected to elaborate on the long-term ecosystem strategy.

The timing is tight. To hit the full-year EV delivery target of 550,000 vehicles, Xiaomi needs to average roughly 55,000 monthly shipments from May through December. Its current monthly record stands at 50,000, set in December last year. The YU7 GT’s launch and the production efficiencies from the SU7 restructuring will need to deliver quickly if the company is to bridge that gap.