Xiaomi Shares Sink to New Floor as Annual EV Target Looks Out of Reach and Cost Pressures Mount

Xiaomi shares fall to €2.51, down 41% YTD. EV deliveries miss targets, Jefferies cuts outlook. Tech pivot to range-extender SUV and in-house chip, but cost pressures mount.

Xiaomi’s stock has tumbled to a fresh 52-week low of €2.51, extending a year-to-date slide of roughly 41% — and investors are showing little appetite for the company’s sprawling expansion plans. The sell-off accelerated sharply on Tuesday, sending the shares down almost 6% in a single session. With the relative strength index falling to around 20, the stock is technically deeply oversold, yet a meaningful rebound remains elusive.

The core problem is a widening gap between the company’s ambitions and its operating performance. Xiaomi has set an annual delivery target of 550,000 electric vehicles, but by the end of May it had managed only about 150,000 units. That shortfall has forced Jefferies to slash its delivery forecast to 495,000 and reduce the valuation multiple it applies to the EV division. The investment bank also rates the stock “underperform” with a price target equivalent to roughly €3. The EV business burned through more than 3 billion yuan in operating cash in the first quarter alone.

On the ground, Xiaomi is throwing everything at the sales problem. In May, deliveries dropped 11% month-on-month to just under 33,000 units. To revive demand, the company has joined a state-backed subsidy campaign targeting rural areas. The core SU7 model now qualifies for official purchase incentives, and buyers trading in an internal combustion car for an EV can access unlimited exchange quotas and special financing. But the needle has yet to move.

The company is also pivoting on technology. After previously committing exclusively to pure battery electric vehicles, Xiaomi has quietly secured regulatory approval for a range-extender model. Under a new sub-brand called Skynomad, it will launch a large family SUV codenamed Kunlun N3. A small combustion engine will act as a generator, pushing total range to roughly 1,500 kilometres. The vehicle is expected to be priced around 200,000 yuan, significantly undercutting market leaders Li Auto and Huawei. The move is a late-market entry, however, and overall sales in the range-extender segment slumped in May, even for the dominant players.

Alongside the EV push, Xiaomi is trying to reduce its dependence on external chip suppliers. In the second half of 2026, it plans to introduce the Xuanjie processor, built by TSMC, which it hopes will rival Qualcomm’s offerings. The first device to feature the chip will be the foldable MIX Fold 5. Yet the strategy carries risk: Apple and Qualcomm are already moving to even smaller manufacturing nodes, and Xiaomi may find itself technologically one step behind from the start.

In the meantime, the cost side of the business is hurting. Memory chips now cost several times what they did a year ago, and since the vast majority of Xiaomi’s smartphones sell for under $200, the company cannot easily pass those expenses on to consumers. Margins are shrinking as a result.

The market’s skepticism is reflected in the short interest, which has risen to about 9% of the freely traded shares. The extremely low RSI of around 20 points to an oversold condition that could theoretically spark a recovery — but traders are waiting on hard catalysts. The next near-term signal comes on June 24, when memory giant Micron Technology reports quarterly earnings, a key indicator for Asian hardware manufacturers’ cost outlook. Later, June vehicle delivery numbers and the full second-quarter results in August will provide concrete evidence of whether the company can get its operational momentum back.

All the while, Xiaomi continues to spend heavily. The company’s annual research budget stands at a hefty 40 billion yuan. With the stock mired at multi-month lows and the EV target looking increasingly out of reach, the market is demanding profits — not promises.