Xiaomi Shares Claw Back 12% from Trough as EV Deliveries and Payments Deal Offset Mounting Losses

Xiaomi's stock rises 12% from 52-week low on export record and Adyen partnership, but EV losses deepen and a memory chip shortage threatens smartphone margins.

Xiaomi’s stock has found a tentative floor after weeks of selling pressure, closing Monday at €2.62 — roughly 12% above its 52-week low of €2.34 struck on 26 June. Two catalysts have fuelled the bounce: record export figures for June and a new partnership with payments giant Adyen. Yet beneath the surface, the Chinese tech group’s aggressive expansion into electric vehicles continues to bleed cash, while a chip shortage threatens its core smartphone business.

The EV division remains the biggest drag on profitability. In the first quarter, Xiaomi delivered around 80,800 vehicles, generating nearly $3 billion in revenue. But operating losses widened to $457 million, implying a loss of roughly $5,600 per car — a stark contrast to the $900 per-vehicle loss a year earlier. The division’s gross margin fell from 23.2% to 20.1%, with management blaming fading purchase incentives, rising component costs, and an unfavourable model mix.

Despite the red ink, Xiaomi is pressing ahead with ambitious production targets and high-performance credentials. The company has developed a proprietary alloy that uses 100% recycled aluminium for the SU7 and YU7 body shells, cutting nearly 800 kilograms of CO? per vehicle. With an annual production goal of over half a million units, the cumulative carbon savings would be substantial. On the track, the YU7 GT — a sport SUV launched in May 2026 — recently shaved its own lap record at the Nürburgring Nordschleife to roughly 7 minutes 23 seconds, while the SU7 Ultra is being tested with new aerodynamic packages aimed at unseating Porsche’s benchmark.

Away from the racetrack, Xiaomi’s international push is gathering pace. The Adyen tie-up will standardise payment processing across global markets, a move analysts see as a support for the high-margin internet services segment. Separately, the company has outlined plans to begin EV sales in Europe in the second half of 2027, supported by an existing research centre in Munich. If the current cost pressures on materials and development persist, that expansion will likely keep the auto division in the red for some time.

Meanwhile, the smartphone side of the business faces a fresh headwind. End-of-June reports indicated that a shortage of memory chips has forced several major handset makers — including Xiaomi — to cut their delivery targets for 2026 by as much as 30%. Rising component costs are already squeezing gross margins, and traces of that pressure appeared in the first-quarter numbers. The market now looks to August, when Xiaomi will publish its next quarterly results, to see whether strong EV sales can offset the drag from handset cost inflation.

Chartists see tentative signs of stabilisation. The 14-day relative strength index sits at 39, suggesting that selling momentum has faded. But the stock remains 33.6% below its 200-day moving average of €3.95, and the €2.60 level is being closely watched as near-term support. A break below that could derail the nascent recovery; holding it would set the stage for a clearer test when second-quarter earnings land in August.