Xiaomi's EV Momentum Builds as HSBC Bets on Margin Recovery

Xiaomi EV deliveries exceeded 286,475 from January to September, with over 40,000 in September alone, as HSBC started coverage with a Buy rating.

Xiaomi's electric vehicle division has crossed a significant threshold, with cumulative deliveries from January through September exceeding 286,475 units, according to founder, chairman and CEO Lei Jun. The September figure alone surpassed 40,000 vehicles, as reported by Reuters, underscoring how quickly the automaker has scaled since its first model hit the road — a debut month that already saw more than 10,000 deliveries.

The delivery data arrives alongside a broader product push. Xiaomi confirmed on September 28 that its new 18 Pro series will launch globally before the end of the year, following the China-only unveiling of the Xiaomi 18 Pro and 18 Pro Max on September 23. The company did not specify a date or target markets for the international rollout, though the move signals its ambition to capture premium-tier share beyond its home turf.

AI Talent Move Signals Long-Term Ambitions

Behind the hardware headlines, Xiaomi is quietly deepening its artificial intelligence bench. LatePost reported that Luo Fuli, who heads the company's MiMo large-model team, was promoted internally to corporate level 22 on September 22 — a personnel decision that reflects how central AI has become to Xiaomi's ecosystem strategy.

Market Weighs Growth Against Near-Term Pressure

Investor sentiment, however, remains far from euphoric. The stock closed at EUR 2.75 in the prior session, down 37% since the start of the year, and was trading at EUR 2.76 in today's session — a modest 0.3% gain. The shares have faced persistent selling pressure, with media reports pointing to a 42.86% decline in adjusted half-year profit as a key drag. Xiaomi's official interim report for the six months to June 30 laid bare rising operating expenses and thinning margins.

Institutional positioning has added to the cautious mood. Asset manager BlackRock disclosed a change in its Xiaomi stake following a relevant event on September 18.

HSBC Steps In With Bullish Call

Against that backdrop, HSBC Research initiated coverage on September 30 with a Buy rating and a price target of HK$33.2. The analysts expect margins in the smartphone segment to recover and see further growth ahead in the EV business. While elevated memory costs are currently weighing on profitability, they argued that the rapid ramp-up of the automotive unit strengthens Xiaomi's business model over the longer term.

Whether the imminent global rollout of the flagship 18 Pro series can inject fresh momentum into a stock that has struggled through a volatile year is the question now facing shareholders.