Xiaomi Stock Teeters at 52-Week Low as Profit Tumbles 43% and Two New EV Rivals Enter the Fray

Xiaomi's shares near 52-week low after Q1 profit crash, as Nio and Smart target its SU7 series with new EVs. US jobs report adds to tech sell-off.

Xiaomi’s stock is battling headwinds on multiple fronts. A brutal 43.1% plunge in adjusted net profit for the first quarter of 2026 has shattered the growth narrative, while two direct electric-vehicle competitors are set to launch models in the same segment on the same day. The shares closed at €3.05 on Friday, a whisker above the 52-week low of €2.97 hit just a day earlier.

The deterioration in the numbers is stark. Revenue fell 10.9% year-on-year to 99.14 billion RMB in the first quarter, and adjusted net profit dropped to 6.1 billion RMB. Diluted earnings per share came in at 0.18 CNY. Jefferies has flagged the margin squeeze from rising memory-chip costs and heavy capital spending in the EV business, while Goldman Sachs held its target price for the Hong Kong-listed shares at 40 HKD after a late May review.

The stock has now lost roughly half its value over the past 12 months and is down 32% year-to-date. The relative strength index sits at 37.2 — technically moderately oversold, but not yet at a level that typically triggers a reversal. As long as the shares remain below the 50-day moving average of €3.38, the technical trend stays bearish. A break below €2.97 would open the door to further selling pressure.

The immediate catalyst for Friday’s sell-off was a blockbuster US jobs report. 172,000 new positions were added in May, more than double the 80,000 economists had forecast, crushing hopes of near-term rate cuts. The Nasdaq tumbled around 4%, wiping nearly two trillion US dollars in tech market value. Xiaomi lost 2.37% on the day amid the broader rout.

But the company’s own challenges run deeper than macro jitters. On June 11, two new rivals will launch models that go directly after Xiaomi’s SU7 series. Nio’s sub-brand Onvo is rolling out the L60, built on a 900-volt platform, while Smart — the joint venture between Mercedes-Benz and Geely — is introducing the #6 EHD, a plug-in hybrid claiming a combined range of up to 1,810 kilometres. Nio, which has posted profitability in two consecutive quarters and doubled its showroom presence, is adding to the competitive heat.

Xiaomi’s automotive ambitions remain bold. The company is targeting 550,000 vehicle deliveries by 2026, a 34% increase from the previous year — a volume that would outstrip the local China production of both Mercedes-Benz and BMW. Monthly deliveries have already exceeded 30,000 units, and China’s EV penetration rate pushed past 59% in December 2025, providing a supportive backdrop. Yet the margin strain is palpable: expanding the vehicle business demands capital at a time when the core smartphone unit is also under pressure.

On the handset side, Xiaomi is preparing the 18-series for the second half of 2026, which is expected to be among the first devices to use Qualcomm’s Snapdragon 8E6 chip built on a 2nm process with speeds up to 5 GHz. The company sees on-device AI as a key growth driver for the next generation of smartphones. But the financial evidence so far suggests that growth in both hardware divisions is coming at the expense of profitability.

The upcoming week also brings the planned SpaceX IPO on June 12, which could drain additional liquidity from the tech sector. That does little to help a stock already testing its floor. Investors will be watching closely whether Xiaomi can hold above the €2.97 mark — a level that, if lost, could trigger a chart breakdown and a new chapter of technical pain.