Xiaomi’s Nürburgring Feat and New EV Brand Can’t Mask a 53% Stock Slide

Xiaomi shares slide 39% in 2026 as EREV market shrinks and EV deliveries lag, despite approval for Kunlun N3, driverless Nürburgring lap, and HyperOS 4 software update.

The Chinese tech giant is firing on multiple technical cylinders—approval for a second electric-vehicle marque, a driverless lap of the Nürburgring, and a major software overhaul. Yet none of that is moving the needle for investors, who have sent the stock to within a whisker of its 52-week low. At €2.72 on Friday, Xiaomi shares are down roughly 39% from the start of 2026 and have tumbled more than 53% over the trailing twelve months.

The immediate pressure comes from the very market Xiaomi is preparing to enter. Beijing’s Ministry of Industry and Information Technology has greenlit production of the company’s first extended-range electric vehicle (EREV), the Kunlun N3, which will be sold under the new sub-brand Skynomad. A full-size SUV measuring over 5.3 metres, it packs a battery larger than 70 kWh and promises an all-electric range of up to 500 kilometres. At roughly 200,000 yuan, Xiaomi undercuts rivals Li Auto and Aito, whose comparable models typically start at 250,000 yuan.

The launch isn’t slated until the second half of 2026, but the segment is already turning hostile. Wholesale EREV sales plunged nearly 25% in May, the steepest monthly drop in five years, shrinking the segment’s market share to 7.0%. Even Li Auto, the undisputed leader, saw deliveries of its flagship L9 collapse 74% in the first four months of 2026 compared with the same period last year. Xiaomi is stepping into a shrinking pond.

Its existing EV business isn’t firing on all cylinders either. The company delivered roughly 150,000 vehicles in the first five months of 2026, a 13.5% year-on-year gain—but to hit its annual target, growth would need to accelerate to 34%. May deliveries of nearly 33,000 units were 17% above a year earlier but fell almost 11% from April. Jefferies responded by slashing its 2026 delivery forecast to 495,000 units and cutting the valuation multiple for Xiaomi’s EV division from 2.2x to 1.5x of projected revenue.

Meanwhile, the carmaking division served up a headline-grabbing achievement. An Instagram post by Xiaomi showed the SUV YU7 completing a lap of the Nürburgring Nordschleife entirely driverless. The feat builds on last month’s 7:22-minute record for the 990-horsepower model, which had already beaten Audi’s previous benchmark. No official lap time has been confirmed, but the technology, powered by Xiaomi’s own LiDAR system, underscores the company’s autonomous-driving ambitions.

On the software side, the company is preparing HyperOS 4. President Lu Weibing confirmed the update will land in July or August in China, with a global rollout following a few weeks later. Dubbed more than a routine annual refresh, HyperOS 4 promises a revamped architecture, an interactive lock screen, deeper AI integration, and heightened privacy features. Android 17 emerged in June 2026, pointing to September as the likely full unveiling.

The smartphone division also has its eyes on a faster global rollout. Leaked certification databases suggest the next flagship, the 18 Pro series (codename “Madrid”), may launch simultaneously in Europe and China as early as November. That would mark a sharp departure from Xiaomi’s typical six-month delay for overseas markets, and it would bring upgraded Leica camera technology to Europe without the usual wait.

Despite this cascade of positive developments, the stock remains mired in bear territory. The relative strength index has dropped to 26, deep into oversold territory, but technical readings alone rarely signal a durable reversal. The 50-day moving average sits at €3.25 and the 200-day average at €4.15—both far above the current price. A daily share buyback programme initiated at the start of June has so far failed to prop up the stock.

Market observers are now waiting for concrete financial catalysts. The Nürburgring record remains unconfirmed in official communication, geopolitical tensions continue to weigh on Chinese tech names, and the EREV segment’s health by the time Skynomad arrives is an open question. For Xiaomi to shift the narrative, investors will need to see delivery momentum that makes the annual target credible—and a reason to believe the Shrinking EREV pond can expand again before the Kunlun N3 hits the road.