Xiaomi Targets a Turnaround: Premium Smartphones, Tesla Veterans, and a 240,000-Order EV Blitz

Xiaomi shares fall nearly 24% YTD as the company launches the Xiaomi 17 Max, taps former Tesla executives to boost EV output, and faces a demand-supply gap with 240,000 YU7 SUV pre-orders.

Xiaomi is deploying both offensive and defensive plays as its stock continues to slide. The shares closed at 3.42 euros on Tuesday, down 23.88% since the start of the year and 39.77% lower over the past twelve months. The price sits below its 50-day moving average of 3.54 euros and well under the 200-day average of 4.54 euros — a clear signal that operational momentum has yet to translate into market confidence.

Yet beneath the weak technical picture, the company is pushing hard on two fronts. In smartphones, CEO Lei Jun has unveiled another addition to the premium lineup: the Xiaomi 17 Max, set for a domestic launch in May. The 6.9-inch device, powered by a Snapdragon 8 Elite Gen 5 chip and a 200-megapixel Leica-tuned main sensor, aims to bridge the gap between the standard and Ultra versions. Pre-orders are already open, and analysts see the premium push as a bid to fortify margins in the core handset business.

The timing of the product rollout coincides with a cautious thaw among institutional investors. HSBC raised its price target on Xiaomi to 54 Hong Kong dollars, and Goldman Sachs has also signalled expectations that first-quarter results, due for board approval on May 26, could beat market forecasts. The optimism revolves around what HSBC calls the "interlocking synergy" between smartphones, smart-home devices, and the electric vehicle venture.

That venture is where the pressure — and the promise — is most acute. Xiaomi delivered 411,000 EVs in fiscal 2025, a 200.4% surge, generating 103.3 billion RMB in revenue. For 2026, the target rises to 550,000 vehicles. The first quarter alone saw over 79,000 units delivered, but hitting the annual goal will require monthly output of roughly 52,000 vehicles — a pace the company has yet to sustain consistently.

To accelerate the production ramp, Xiaomi is tapping Tesla expertise. Industry sources report that Kong Yanshuang, formerly Tesla’s China general manager, is taking over sales at Xiaomi, while Song Gang, a veteran of Tesla's Shanghai factory, joins to oversee manufacturing. The message is blunt: scale up, cut friction, and professionalise the supply chain. The Beijing plant can produce 450,000 vehicles annually, while the new Wuhan facility, scheduled to begin operations in May 2026, will add another 150,000 units of capacity.

The demand side only heightens the urgency. Reservations for the new YU7 SUV hit 240,000 lock-in orders within the first 18 hours, representing over 60 billion RMB in potential revenue. The entry price is 253,500 RMB, but waiting times for the standard model stretch to 53–56 weeks. Strong orders are a double-edged sword: they validate the product but expose the bottleneck between desire and delivery.

An emerging technical controversy adds another layer of complexity. A senior Audi manager publicly questioned whether Xiaomi uses consumer-grade chips instead of automotive-grade semiconductors in its vehicles. Founder Lei Jun responded that the chips have passed AEC-Q104 testing. The dispute touches on a fundamental tension in the new EV world: traditional automakers prioritise durability over 15–20 year lifespans, while newcomers lean into computing power and software integration. For now, the market has not punished the stock over this issue, but it remains a flashpoint as Xiaomi scales.

As the company gears up for its May 26 board meeting — where detailed smartphone margins and EV operational metrics will be scrutinised — the stock is trying to find a floor. It recently touched a low of 3.17 euros, and chart watchers see tentative signs of bottoming. But with the Wuhan factory still months away from its first car, the near-term narrative hinges on monthly delivery numbers. If Xiaomi cannot sustain the roughly 52,000-vehicle monthly cadence, the bullish excitement from a 240,000-order deluge could quickly sour into delivery frustration.