HSBC Opens Xiaomi Coverage With Buy Rating as EV Deliveries Top 40,000

Xiaomi Auto delivered over 40,000 EVs in September, with the Pengcheng line above 10,000, as HSBC starts coverage at Buy and shares fall 2.8%.

Xiaomi has picked October 7 as the date it will publish detailed delivery figures for the debut sales month of its Pengcheng model line, a disclosure that lands just as the company's automotive arm clears a significant volume milestone. September saw Xiaomi Auto hand over more than 40,000 electric vehicles to customers, with the newly launched Pengcheng series accounting for over 10,000 of those handovers in its first month on the market.

The operational momentum has not gone unnoticed among analysts. On September 30, HSBC initiated coverage of Xiaomi with a "Buy" rating and a price target of 33.20 HKD. The bank views the company's push into the battery-electric vehicle market as a key growth driver that complements its established electronics business. HSBC also framed 2026 as a transition year in which elevated memory costs will weigh on profitability in the smartphone segment, while projecting a margin recovery in the following year.

A Tough Stretch for the Share Price

Those upbeat fundamentals are colliding with a difficult stretch for the stock. In Friday's session, Xiaomi shares came under pressure amid a broad selloff on the Hong Kong exchange, sliding 2.8% to EUR 2.76. According to media reports, a generally weak risk appetite, high US Treasury yields and the holiday-related absence of southbound flows through the Stock Connect program all weighed on technology names. The Hang Seng shed 2.6% and the Hang Seng Tech index lost 2.3%, with Xiaomi posting notable losses of its own.

The setback caps a volatile period. Year to date, the stock is down 36%. In today's trading, the shares are giving up another 1.5% to EUR 2.71, extending the year-to-date decline to 37%. Market participants are treating Wednesday's upcoming delivery details as an important gauge of how firmly demand is holding up following the launch of the new model line.

Hardware, Software and AI Rollouts in Parallel

Beyond the vehicle business, Xiaomi continues to build out its product portfolio across several core segments. At a fall event on September 23, the company unveiled new hardware including the Xiaomi 18 Pro smartphone series alongside current tablets, wearables and smart home products. On the software side, the next step is imminent: a stable rollout of the HyperOS 4 operating system in the Chinese market is scheduled to begin on October 15.

The company is also advancing its own software tooling. On September 21, it presented the new MiMo V2.6 Pro and Flash versions at MiMo Studio, and provided access to the UltraSpeed model. These releases are aimed at expanding the company's software infrastructure and deepening functional links within its own product ecosystem.

Rising vehicle deliveries paired with these software adjustments currently form the strategic center of gravity for the group. Having cleared the 40,000-delivery mark in September, Xiaomi now faces Wednesday's confirmation of momentum across individual model lines.