Xiaomi's Hybrid SUV Bet Arrives as EV Delivery Gaps and Losses Weigh on Stock

Xiaomi shares trade near 52-week low as EV losses mount, delivery targets miss, and a new family hybrid SUV enters a shrinking EREV market amid smartphone launch plans.

European markets closed Friday with Xiaomi shares at €2.89, just 2.6% above their 52-week low of €2.82, as the Chinese tech giant navigates a turbulent transition from smartphone maker to automaker. The stock has shed more than a third of its value since the start of the year and lost over 50% on a twelve-month view, reflecting investor unease over the company's EV ambitions — which now include a newly approved hybrid vehicle under a dedicated family-oriented sub-brand.

China's Ministry of Industry and Information Technology published the filing on Wednesday for the Kunlun N3, a full-size SUV exceeding 5.3 meters in length. It features a 1.5-liter range extender and a battery exceeding 70 kWh, delivering a pure electric range of 400 to 500 kilometers. Sunwoda will supply 60% of the battery units, with CALB covering the remaining 40%. The model will debut under the Skynomad marque, targeting families — a demographic Xiaomi had previously ignored with its sportier SU7 and YU7 models. The move marks the company's entry into the extended-range electric vehicle segment, where it will compete with established players like Li Auto and Huawei-backed Aito, which together accounted for seven of the ten best-selling EREV SUVs in 2025.

The regulatory green light comes as Xiaomi's core EV business struggles to meet ambitious targets. The company has set a 2026 delivery goal of 550,000 vehicles, but after five months only 150,317 units had been handed over — a 13.5% year-on-year gain that falls well short of the required trajectory. May deliveries of 32,759 vehicles were roughly 11% below April's 36,702, and the YU7 model saw its monthly sales collapse from 37,869 in January to just 9,876 in April. Meanwhile, the wholesale market for EREVs in China contracted by nearly 25% in May — the steepest one-month drop in five years — and the segment's market share has shrunk to 7.0%. Even segment leader Li Auto suffered a 74% year-on-year delivery decline for its flagship L9 in the first four months of 2026.

Each EV currently costs Xiaomi roughly $5,600 more than it sells for, weighing heavily on the bottom line. First-quarter 2026 revenue fell to 99.1 billion yuan, down almost 11% year-on-year, and adjusted net profit slipped to 6.1 billion yuan. In response, management authorized a share buyback of up to 20 billion Hong Kong dollars over twelve months, though the program has done little to arrest the stock's decline. The relative strength index at 32.6 signals oversold conditions, yet the market remains focused on the widening gap between promises and deliveries.

Amid the auto struggles, Xiaomi is pressing ahead with smartphone launches in key growth markets. In India, three devices are slated for June: the Xiaomi 17T, Redmi Turbo 5 (launching June 16 with a MediaTek Dimensity 8500 Ultra and a 7,560 mAh battery with 100W charging), and the Redmi 17 5G. Closer to home, the 18-series is expected in September, powered by the Snapdragon 8 Elite Gen 6 built on TSMC's 2 nm process, though the Ultra variant is paused due to rising component costs. President Lu Weibing has signaled a new platform with multiple derivatives in the second half — likely including the Kunlun N3.

The coming months will be critical. Xiaomi must sustain monthly EV deliveries well above 30,000 units through July and August if it hopes to salvage the 550,000-unit annual target. The EREV filing is a concrete step, but with final regulatory approval not expected until after a comment period ending June 17 and serial production months away, the Kunlun N3 may not contribute meaningfully to 2026 volumes. For now, investors remain focused on the underlying numbers — and they are not encouraging.