Xiaomi’s YU7 Hits 304 km/ h, Yet the Stock Stays Stuck Near Lows as EV Woes Mount

Xiaomi's record buyback and high-speed YU7 GT test can't halt a 50% stock plunge as EV sales crater and losses mount. A new hybrid SUV faces cooling market.

Xiaomi has mounted its biggest-ever share buyback, unveiled a searing 304 km/h test run for its YU7 GT, and is pushing ahead with a new extended-range SUV. The market, so far, is paying little attention. The stock is hovering around €2.90, barely above the 52-week low of €2.82 touched on 11 June, and has shed more than a third of its value since the start of the year. The 200-day moving average sits at €4.23, a distant reminder of where the shares were trading before the EV division began to stumble.

The buyback, announced in early June, authorises the repurchase of up to HK$20 billion in Class B shares. The first tranches have already been cancelled, yet the price has barely budged. Over the past twelve months, Xiaomi’s stock has more than halved, and the June 2025 high of €6.69 looks like a relic of a different era. The relative strength index at 33.9 is nearing oversold territory, but technical indicators alone cannot mask the fundamental drag from the auto unit.

That unit did produce a headline-grabbing moment on 14 June, when CEO Lei Jun took to the Yancheng proving grounds to demonstrate the performance of two YU7 models. The GT variant reached a top speed of 304 km/h, while the standard version clocked 220 km/h. Lei Jun stressed that these numbers are not just marketing fluff — they reflect genuine engineering strength in the chassis, battery, powertrain and thermal management, and translate into safety reserves in everyday driving. The GT also completed 50 consecutive emergency stops with braking distances between 32 and 36 metres, using a carbon-ceramic system identical to the one in the SU7 Ultra that withstands temperatures up to 1,300 °C without fade.

Impressive as the track results are, they have done nothing to address the real problem: vanishing sales volumes. Deliveries of the YU7 SUV have cratered from nearly 38,000 units in January to fewer than 10,000 in April. Xiaomi still targets 550,000 EV deliveries for the full year, but after five months only about 150,000 cars have left the factory. The arithmetic gap is widening fast, and the first-quarter operating loss of 3.1 billion yuan from the EV business underscores how expensive it is to build cars at current scale.

A new model could help, but timing is tight. On 17 June, the public comment period closes with China’s Ministry of Industry and Information Technology for an extended-range vehicle under the Skynomad sub-brand. Xiaomi is pricing the hybrid aggressively at around 200,000 yuan — yet the broader market for such plug-in hybrids is cooling. Industry-wide sales in that segment slid by nearly a quarter in May. Despite the headwind, Xiaomi has ramped up spending: first-quarter research and development outlays rose by a third to 9 billion yuan.

The next earnings report, due in August, looms as a proving ground. Goldman Sachs has warned that adjusted net profit could plunge by 50% in the second quarter. The buyback shows that management remains confident in the long-term story, but with deep losses in autos and a delivery trajectory that appears to be slipping further behind the annual target, the stock lacks a catalyst to break out of its current rut. The YU7 may have set a speed record on the track, but on the road to profitability the company is still crawling.