Xiaomi's India Exodus and Unauthorized German EV Entry Compound Stock's Slide to 52-Week Low

Xiaomi shares plunge 58% as India exits, EV operating losses, and chip market share declines weigh. EPS drops 57% YoY; recovery hinges on H2 spending.

The stars are not aligning for Xiaomi. The stock touched a fresh 52-week trough of €2.79 in Frankfurt, down almost 58% from last June's peak. A 14-day RSI of 29.7 flags oversold territory, but technical bounces have been fleeting — the shares shed another 17% in the past 30 days alone, bringing the year-to-date loss to 37.2%.

Behind the bearish chart lies a perfect storm of operational headwinds. India, Xiaomi's most critical market outside China, is bleeding senior talent. Chief marketing officer Anuj Sharma, the architect of the Xiaomi and POCO brand resurgence on the subcontinent since 2018, exits in June. He is just the latest in a string of departures that began in 2022 with executives Manu Kumar Jain and Raghu Reddy. The exodus leaves Alexander Tang, the current India head, navigating a reset toward premium devices with a thinning bench.

That premium push got a boost today with the Indian launch of the Redmi Turbo 5, packing a MediaTek Dimensity 8500 Ultra, a 7,540 mAh battery, and 100-watt charging. Sales start June 19 at around 35,999 INR. To rebuild buyer confidence after a rough stretch — Q1 2026 revenue slid almost 11% year-on-year to 99.1 billion CNY — Xiaomi is offering a guaranteed buyback of 60% after one year.

The smartphone engine is also losing steam at the chip level. Counterpoint Research data shows Qualcomm and MediaTek ceded market share in the first quarter to Unisoc, which gained four percentage points thanks largely to Xiaomi's LTE-powered Redmi models. The company remains dominant in entry-level pricing, but that strength has done little to prop up the stock.

Meanwhile, the EV division is a study in contrasts. Monthly deliveries exceeded 30,000 units for the first time in May, with cumulative January-to-May volume reaching roughly 140,000. The segment and related AI businesses booked 19.9 billion CNY in Q1 revenue — but also an operating loss of 3.1 billion CNY. Xiaomi is sticking to its ambitious 550,000 delivery target for 2026 despite a Chinese passenger-vehicle market that shrank 22% in May.

Adding to the uncertainty is an unsolicited market entry in Europe. A German importer called Autohelden plans to bring in the SU7 and YU7 without Xiaomi's consent, aiming for 16,000 vehicles in the first year. Xiaomi Technology Germany has publicly distanced itself and is exploring legal options.

The Android security patch for June 2026 is rolling out, fixing a critical framework vulnerability that Google says is already under active exploit. The update covers flagship devices like the Xiaomi 15 series, 15T Pro, 14T Pro, and Redmi K70 Ultra, with more models to follow. It addresses one risk but does nothing to soothe investor nerves.

Earnings per share tumbled to 0.18 CNY in Q1 from 0.42 CNY a year earlier. For the full year 2026, the sell-side consensus sits at 1.12 CNY per share — a figure that hinges heavily on a recovery in Chinese consumer spending and auto demand in the second half. The market will get its first real test on August 26, when Xiaomi reports second-quarter results. Whether the smartphone push and accelerating EV deliveries can finally reverse the narrative remains an open question.