Xiaomi’s Range-Extender Bet Lifts Shares, but the Stock Needs More Than One Good Day

Xiaomi shares jump 9% on Sky Nomad SUV launch with 1,500 km range, but remain 57% below 52-week high amid smartphone margin pressure and chip cost rises.

Xiaomi’s announcement of a new electric vehicle series with range-extender technology provided a much-needed catalyst on Wednesday, lifting the stock 9.32% to €2.82. The gain, however, does little to change a brutal year: the shares are still down 37.18% since January and sit almost 57% below their 52-week high of €6.51. The rally is a reminder that news flow can still move the market, but the structural challenges facing the company remain firmly in place.

The new line, christened “Sky Nomad,” marks a clear departure from Xiaomi’s earlier all-electric approach. The first model – a 5.3-metre SUV internally referred to as the N90 – pairs a large battery with a 1.5-litre turbocharged petrol engine that acts purely as a generator. The setup delivers an electric-only range of up to 500 kilometres and a combined range exceeding 1,500 kilometres. The vehicle targets families and outdoor enthusiasts, pitting Xiaomi directly against established players such as Li Auto in China’s fiercely contested SUV segment.

The strategic shift ends the company’s dependence on the single-model SU7 and signals an ambition to build a higher-margin product portfolio. Xiaomi plans to launch the Sky Nomad series in the second half of the year, with full technical specifications and pricing expected by the end of July. Analysts will focus on the battery supply chain – partners include Sunwoda and CALB – as well as the final price tag, which could reach 450,000 yuan in the top variants.

Operationally, Xiaomi’s automotive division is gaining momentum. The company delivered roughly 180,000 vehicles in the first half of the year and has maintained its full-year target of 550,000 units. Achieving that goal will require sustained monthly deliveries above 30,000 vehicles, a level the company approached in May with nearly 33,000 units handed over. The production ramp has been steep, and the new SUV series will be critical to absorbing additional capacity.

Yet the rise in chip costs is squeezing Xiaomi’s smartphone business, the core profit engine. Memory-chip prices have climbed sharply, compressing margins in a segment that still accounts for a substantial share of group revenue. The auto division’s rapid expansion must now compensate for that pressure if overall profitability is to hold steady.

Technically, Wednesday’s jump brings the stock to a key juncture. The 50-day moving average at €3.02 presents an immediate resistance level. A clean break above that threshold could attract additional buyers and open the path toward the 200-day moving average near €3.92, a zone the shares have not visited in months. Should the rally stall, a retreat toward the recent low of €2.34 remains a real risk.

Xiaomi’s broader R&D commitment is ambitious: the company plans to invest over €24 billion by the end of the decade. For now, the market’s focus is squarely on execution – whether the Sky Nomad can deliver the volumes and margins needed to reverse a long-term downtrend. The next few months, starting with the technical reveal at the end of July, will be decisive.