Xiaomi's EV Delivery Deficit and Memory Price Surge Sink Shares to New Floor

Xiaomi shares plunge 62% from peak as EV delivery targets falter and memory chip costs quintuple. Operating losses per EV at $5,600; smartphone margins at 10%.

The stock touched a fresh 52-week nadir of €2.51, extending its slide to 62% below the June 2025 peak and leaving the year-to-date loss at 43%. That brutal sell-off reflects a widening gap between Xiaomi's soaring ambitions and the hard numbers on the ground — both on the road and in the semiconductor supply chain.

The electric-vehicle division, a key growth narrative, has delivered 150,317 cars through the first five months of 2026. To hit the internal target of 550,000 for the full year, monthly output would need to average roughly 57,500 units from June onward — nearly 15% above the previous record of 50,000 set in December. May told a different story: 32,759 deliveries, up 17% year-on-year but down 10.7% from April. Analysts at Jefferies have pared their own forecast to 495,000 vehicles and slashed the EV unit's valuation multiple.

Compounding the delivery headache is a cost explosion in memory chips, the lifeblood of Xiaomi’s core smartphone business. President Lu Weibing disclosed that chip prices have quintupled since late 2025, with the bill for television-grade components climbing tenfold. The bereinigte net profit for the entire group collapsed 43% in the first quarter to 6.1 billion renminbi. Gross margin in the smartphone segment has shrunk to roughly 10%, and Jefferies estimates that 62% of Xiaomi handsets sell for under $200 — leaving almost no room to pass along higher input costs.

The EV division's own financials deepen the gloom. Revenue from the automotive unit reached 19.9 billion yuan in the first quarter, but operating losses amounted to 3.1 billion yuan, or roughly $5,600 per vehicle handed over. Subsidies and expensive components are eating the margins. Xiaomi is pinning hopes on an extended-range electric vehicle (EREV) — the Kunlun N3, a 5.3-metre SUV under the newly minted Skynomad subbrand, boasting more than 70 kWh of battery capacity and up to 500 kilometres of pure electric range. The timing, however, is treacherous: industry-wide EREV wholesale sales plunged nearly 25% in May, the steepest monthly drop in five years, while segment leader Li Auto saw deliveries of its flagship L9 tumble 74% in the first four months of 2026.

A buyback programme of up to 20 billion Hong Kong dollars, launched in early June and already covering roughly 30 million shares, has failed to stem the bleeding. Short sellers still hold about 9% of the free float, betting on further downside. The relative strength index sits near 21, a technically oversold level, but the market is waiting for a real catalyst. That could come later today when memory giant Micron Technology reports quarterly earnings — a key indicator for Asian hardware makers' cost outlook. Xiaomi itself will release second-quarter numbers on 26 August. Before then, investors will scrutinise June EV delivery figures for any sign that the production ramp is finally gaining traction.

On the software side, HyperOS 4 is expected to debut in China during July or August, with a global rollout following weeks later. The Xiaomi 18 Pro models are slated for a European launch at the end of September, skipping the usual six-month delay — a small operational bright spot in an otherwise punishing landscape.