Xiaomi’s Two-Front War: Record EV Deliveries and a Flagship Phone Launch Battle a 28% Stock Rout

Xiaomi shares jump 7% after April EV deliveries hit 30,000, but smartphone margin pressure and a 28% YTD stock decline persist ahead of Q1 results.

The disconnect between Xiaomi’s operational momentum and its stock price has rarely been starker. While the company’s shares have shed nearly 28% since the start of 2026—hitting a 12-month low in late April—the underlying business is firing on multiple cylinders. On Monday, a fresh delivery record in the electric vehicle segment sent the stock surging over 7% to €3.40, pulling it away from that recent trough.

The catalyst was a clear operational milestone. Xiaomi handed over more than 30,000 electric vehicles to customers in April, a leap of roughly 50% from a sluggish March, when production line changes had crimped output. The SU7 sedan continues to drive growth, with the company reporting over 70,000 firm orders already on its books.

The management is sticking to an ambitious annual target: 550,000 vehicle sales by the end of 2026. To get there, production will need to average 55,000 cars per month starting in May—a steep ramp-up that will test the company’s manufacturing capabilities.

Meanwhile, the premium segment is getting a fresh push. The upcoming YU7 GT, a high-performance SUV, is expected to carry a price tag of up to 500,000 Yuan and is squarely aimed at the lucrative premium market. Analysts see this model as a potential catalyst for improving operating margins.

The Smartphone Side of the Story

On the smartphone front, Xiaomi is preparing a major product offensive. The MIX 5, a model that has been absent for four years, is set for a global launch—a strategic reversal from the China-only release of the MIX 4 in 2021. Internal data suggests a full rollout covering India and Europe.

The device is expected to feature an improved under-display camera, magnetic lenses for focus control, and the Snapdragon 8 Elite Gen 6 Pro chip running HyperOS 4. Reports indicate that Xiaomi’s under-display camera technology has finally reached mass-production quality, with earlier generations plagued by visible graininess. Mass production of the magnetic lens components reportedly began in February 2026, pointing to a launch later this year, though no specific date has been confirmed.

A new flagship smartphone is also slated for late May, designed to serve as the central hub for Xiaomi’s operating system, which connects mobile devices directly with its vehicles. Additionally, the Smart Band 10 Pro fitness tracker is due in May 2026, featuring a dual-band GNSS chip with five systems—a notable upgrade over its predecessor.

The Cost Squeeze

The operational picture isn’t all rosy. The fourth quarter saw a sharp drop in adjusted profit, with rising memory costs squeezing smartphone margins. Analysts don’t expect near-term relief. To support the stock, Xiaomi has been buying back its own shares, spending roughly 200 million Hong Kong dollars.

The next major catalyst comes on May 26, when the board will review the unaudited first-quarter results for 2026. The market is eager for detailed insight into the profitability of the EV division—hard numbers on the cost of that rapid volume growth. A shareholder meeting in Beijing on June 2 will then vote on the audited 2025 annual accounts.

Whether the product offensive can offset the margin pressure will become clearer when those Q1 numbers land. After a 28% slide from the start of the year, the bar for good news is set low.