Xiaomi’s Split Screen: Record EV Deliveries vs. a Stock at Rock Bottom

Xiaomi's auto division posts best-ever monthly deliveries, but shares fall 30% YTD amid smartphone margin pressure and uncertainty over EV profitability.

Xiaomi is living a tale of two businesses. Its fledgling auto division just posted its best-ever monthly delivery figure, yet the company’s shares are plumbing depths not seen in a year. The disconnect between operational momentum and market sentiment has rarely been starker.

The electric-vehicle arm shipped over 30,000 units in April, a near-40% surge from March’s 21,440 vehicles. Year-on-year, the gain was a more modest 5% against the 28,500 units delivered in April 2025. For the first four months of 2026, cumulative deliveries hit 114,000 vehicles, representing a 17% increase over the same period last year.

Two models are powering this growth. The SU7 Facelift, which hit the market on March 19, has already racked up around 60,000 firm orders in its first 35 days. The YU7 electric SUV, launched in June 2025, has now reached cumulative deliveries of 231,000 units, cementing its position as the volume leader in Xiaomi’s automotive lineup.

Yet the company’s ambitious full-year target of 550,000 vehicles remains a steep climb. To hit that number, monthly output would need to average over 55,000 units through December — nearly double April’s record pace.

A Stock in the Doldrums

While the EV division hits new highs, Xiaomi’s share price is hitting new lows. The stock touched a 52-week trough of €3.17, almost 30% below where it started the year. In European trading on Friday, it closed at €3.20.

Analysts remain broadly constructive, with an average price target for 2026 of around $5.71. That wide gap between target and current price underscores the deep uncertainty surrounding margins in the automotive segment.

The margin pressure is most acute in Xiaomi’s core smartphone business. In the fourth quarter of 2025, gross margins in the handset division slipped to 8.3%, while global shipments came in at just under 38 million units. The company is responding by pushing further upmarket — premium devices now account for a record 27.1% of domestic sales in China.

A Product Blitz in May

On the smartphone front, Xiaomi is accelerating its launch calendar. The 17T and 17T Pro are now expected to debut in May, roughly four months earlier than the usual cycle. Multiple certification filings, including with the FCC and IMDA, confirm the international rollout.

The Pro model will be powered by the MediaTek Dimensity 9500 chip and pack a 7,000 mAh battery with 100-watt fast charging. In Europe, both models will ship with 12 GB of RAM, with the Pro available exclusively in a 512 GB storage variant.

Further out, Xiaomi is preparing its next-generation in-house processor, the XRING O3. Leaked code entries reveal a simplified three-cluster architecture — prime, titanium and efficiency cores — moving away from the four-cluster design of the XRING O1. The prime core is expected to hit 4.05 GHz, with GPU clock speeds approaching 1.5 GHz. The chip will debut in the Xiaomi 17 Fold, codenamed “Q18,” a foldable smartphone slated for a China launch in August 2026, possibly timed to the company’s Xiaomi Day on August 8. The XRING O3 will be fabricated on TSMC’s 3-nm process, while a sibling chip, the XRING O2, is being developed on the same node primarily for automotive applications.

The Next Catalysts

The next major data point comes on May 26, when the board is expected to approve and release unaudited first-quarter results. Shortly after, Xiaomi will launch the high-performance YU7 GT, a move that underscores its push into the premium EV segment.

On the international front, the company confirmed at its late-April Investor Day that it will enter the European EV market in the second half of 2027, with right-hand-drive markets to follow in early 2028. For now, though, investors are left weighing record automotive deliveries against shrinking phone margins and a stock that can’t seem to find a floor.