Xiaomi’s EV Division Burns Through 3.1 Billion Yuan in Q1 as Stock Clings to 52-Week Low Despite $2.6 Billion Buyback

Xiaomi shares hit 52-week low as EV unit posts 3.1B yuan loss, deliveries lag target. New phone and SUV launch offer limited relief; buyback program continues.

Xiaomi’s investors have been dealt a double blow: the electric-vehicle unit’s deepening losses are eroding confidence even as a vast share buyback struggles to keep the stock afloat. The company’s shares closed at €2.46 on Friday, barely above the 52-week low of €2.34, and have now lost 45% since the start of the year — and 63% over the past twelve months.

The selling pressure is not just technical. The relative strength index has dropped to 19.8, a reading that typically signals an extreme oversold condition. Yet the market is fixated on the cash drain from Xiaomi’s automotive ambitions.

The EV division posted an operating loss of 3.1 billion yuan in the first quarter as the company ramps up production capacity for its electric vehicles. Between January and May, Xiaomi delivered roughly 150,000 cars, but that pace falls far short of the annual target of 550,000 units. In May alone, deliveries slipped 10.7% compared with the previous month.

Management is responding with new models and a marketing push. Later this week, on June 30, Xiaomi will unveil the Redmi K90 Ultra gaming smartphone in China, priced around 3,000 yuan. The device features a Snapdragon 8 Elite chip and an active cooling fan that can lower internal temperatures by up to 10°C in just 100 seconds. While the phone launch may provide a short-term sentiment boost, a lasting recovery depends on operational progress in the capital-intensive EV business.

Xiaomi is also advancing its range-extender vehicle strategy. Chinese regulators have approved production of the “Sky Nomad” SUV, a model exceeding 5.3 meters in length that is aimed squarely at families. A combustion engine charges the battery on the move, enabling a total range of roughly 1,500 kilometers, with the electric-only portion covering 400 to 500 kilometers. The official launch is scheduled for the fourth quarter of 2026, with industry analysts expecting a starting price around 200,000 yuan — a direct challenge to market leader Li Auto.

On the core smartphone and smart-home front, the company is navigating a difficult environment. Rising memory and chip costs are squeezing margins: Apple recently raised prices on certain Mac models in China by as much as 33%. Xiaomi is working closely with MediaTek to contain cost increases. Despite these headwinds, the new 17T series sold around 103,500 units in its first week, according to the company, countering a recent Goldman Sachs warning that smartphone shipments could decline due to higher component costs.

Over the weekend, Xiaomi announced concrete steps in its buyback program, instructing brokers to acquire up to 4 billion Class B shares within the existing 20 billion Hong Kong dollar (roughly $2.6 billion) framework. CEO Lei Jun has used the depressed valuation to reduce the share count and cushion the stock. On Sunday, he also emphasized the company’s commitment to quality control in the automotive division, noting that the test team now comprises more than 800 specialists.

In parallel, Xiaomi expanded its smart-home lineup with a vacuum robot featuring 10,000 Pa of suction, priced at about €215, and new refrigerator models with capacities of 186 and 216 liters. The product blitz, however, has yet to stem the decline in investor sentiment.

The next major catalyst will be the Q2 earnings report on August 26, 2026. For now, the stock’s fate may hinge on whether the €2.34 low holds. If that level breaks, the buyback alone may not be enough to prevent a further slide.