Xiaomi Rushes Buyback as EREV Green Light Meets 52-Week Low and Profit Warning

Xiaomi shares fall to €2.76 as HK$102M buyback and EREV green light fail to lift sentiment; delivery targets and thin margins weigh.

Xiaomi’s stock has tumbled to a fresh 52-week low of €2.76, even as management pours HK$102 million into a share buyback and secures a pivotal regulatory approval for its first extended-range electric vehicle. The disconnect between the company’s ambitious expansion and market sentiment has never been starker.

On Tuesday, the technology group repurchased 4 million shares at a cost of roughly HK$102 million, an intervention designed to stem losses that have wiped out 37% of the stock’s value since the start of the year. The shares closed at €2.81, just pennies above the trough. With the relative strength index at 29, the stock is technically oversold, yet the 200-day moving average sits 33% above the current price, underscoring the depth of the selloff.

The buyback coincides with a milestone from China’s Ministry of Industry and Information Technology, which has published Xiaomi’s application for extended-range electric vehicles. The public comment period ends today, clearing the way for final approval. Until now, Xiaomi EV could only produce battery-electric models such as the SU7 sedan and YU7 SUV. The new EREV platform — using a combustion engine solely as a generator to charge the battery — will allow the company to target family buyers with a model internally code-named “Kunlun N3.” Chinese media reports indicate the vehicle, measuring over 5.3 metres, will be sold under a new sub-brand called Skynomad at around 200,000 yuan — significantly cheaper than comparable offerings from Li Auto and Aito, which start at 250,000 yuan. Xiaomi has not yet confirmed the brand name, product details, or launch timeline.

Entering the EREV segment pits Xiaomi against established players at a delicate moment. Li Auto, the current market leader in China, delivered 33,350 vehicles in May — an 18% drop year-on-year — and has seen total deliveries in the first five months of 2026 slip by roughly 3% to about 162,600 units. The segment is shrinking, and price-sensitive buyers may gravitate toward Xiaomi’s lower-cost proposition. Still, Vice President Song Gang recently warned of extremely thin profit margins in the electric-vehicle industry, arguing that survival hinges on efficient supply chains. The group is doubling down on vertical integration, developing its own chips and artificial intelligence capabilities to slash manufacturing costs.

The bigger headache remains the delivery target for 2026: 550,000 units, a 34% increase over 2025. In the first five months of the year, Xiaomi managed just 150,317 vehicles — a 13.5% year-on-year rise but well below the pace required. May deliveries of 32,759 units were down roughly 11% from April. Four new models are planned this year, including two EREV SUVs in five- and seven-seat configurations. President Lu Weibing confirmed in the first-quarter earnings call that a model on an entirely new platform would arrive in the second half of 2026.

Analysts at Goldman Sachs anticipate a sharp profit hit when second-quarter results are released. Adjusted net income could plunge by as much as 50%, dragged down by heavy start-up losses in the EV division. The stock now risks falling below the key support level of €2.79, which could trigger further selling.

On the smartphone side, Xiaomi continues to churn out fresh hardware. The new Redmi Turbo 5 features a silicon-carbon battery promising more than two days of use, helping the company monetise its 746 million monthly active users worldwide. Yet such operational expansion stands in stark contrast to the stock’s trajectory. With the buyback providing only temporary support, the pressure is on management to translate cost cuts in the EV business into tangible earnings improvement — quickly.