Xiaomi’s Sky Nomad N90 SUV Targets Premium Segment as Stock Struggles to Clear Resistance

Xiaomi unveils the Sky Nomad N90 full-size EREV SUV with aggressive pricing, but a 35% YTD stock drop, production hurdles, and a $2B share overhang keep investors cautious.

Xiaomi’s automotive ambitions have taken a decisive turn with the unveiling of its second vehicle line, but the stock’s recovery remains a work in progress. The Chinese tech giant released high-resolution images of its upcoming full-size SUV, the Sky Nomad N90, on Friday, sending shares up 3.75% to €2.92 on the day. That pushed the weekly gain to 10.19%, yet the stock is still nursing a year-to-date loss of 34.97%.

The N90 marks a deliberate departure from the sporty SU7 sedan. Measuring over 5.30 metres in length with a wheelbase of roughly 3.10 metres, the new model is a substantial family hauler built around an extended-range electric vehicle (EREV) architecture. A 1.5-litre turbo-petrol engine acts as a generator for the electric motors, while a battery pack exceeding 70 kWh delivers 400 to 500 kilometres of pure electric range. Combined with the combustion unit, total range is expected to top 1,500 kilometres. A roof-mounted LiDAR system hints at advanced autonomous driving capability.

A convertible cabin and an aggressive price target

Xiaomi is marketing the N90 as a “smart, versatile large-space SUV.” The front seats can swivel 180 degrees, transforming the cabin into a lounge or meeting room. A seven-seat layout will launch first, with a five-seat variant to follow. Chinese customers can already place reservations, and deliveries are scheduled to begin in August 2026.

Pricing looks set to be aggressive. Media reports suggest a starting price near 200,000 yuan — well below competitors such as the Li Auto L9 and NIO ES8, which typically start above 250,000 yuan. That undercutting could pressure margins from day one, especially as the broader Chinese EV market is locked in a brutal price war.

The production math is unforgiving

Xiaomi’s delivery target of 550,000 vehicles in 2026 is the number that truly matters to investors. After delivering 185,055 units in the first half, the company needs to average more than 60,000 deliveries per month for the rest of the year — a cadence it has never achieved. The Sky Nomad line is meant to fill that gap, but the ramp-up will be closely watched.

Analyst sentiment is divided. Morgan Stanley recently cut its price target, citing rising costs for memory chips and semiconductors as well as short-term margin pressure in the auto business. Zephirin, meanwhile, issued a sell recommendation on Friday. The stock’s relative strength index of 59.3 points to a neutral-to-slightly-bullish posture, but the share price still sits 2.93% below its 50-day moving average of €3.01. The 200-day average of €3.90 remains much further overhead, underlining a medium-term downtrend that is very much intact.

A multi-billion-dollar overhang

Adding to the caution, a significant share overhang looms. Co-founder Lin Bin plans to sell up to $2 billion worth of Xiaomi stock starting in December 2026, capped at $500 million per year. While the sales are phased, the announcement has weighed on sentiment.

On the bullish side, the SUV push diversifies Xiaomi away from its slowing smartphone core. The family SUV segment generates fatter margins in China, and the Sky Nomad line could attract new customer segments. But with the stock still roughly 20% above its 2026 low of €2.34 set in late June, and the market capitalisation standing at €66.61 billion, the next clear catalyst is the official pricing and launch of the N90 in the second half of this year. Until then, the share price is likely to remain caught between the promise of a new product line and the hard realities of a production target that still looks out of reach.