Xiaomi's Electric Vehicle Momentum Sparks Investor Interest

Xiaomi's YU7 SUV was China's best-selling EV in Jan 2026, while share buybacks signal confidence. Despite strong sales, the stock remains in a downtrend.

The Chinese technology giant Xiaomi is generating significant operational momentum in its electric vehicle (EV) division, delivering the kind of positive catalyst long-awaited by shareholders. A key driver is the remarkable market performance of its new SUV, while concurrent corporate share repurchases provide a complementary signal of financial confidence to the market.

Share Buybacks Signal Corporate Confidence

Capital market activity is reinforcing the operational narrative. According to reports, on 20 February 2026, the company repurchased 4.28 million of its own shares, with a total transaction value of approximately 152 million HKD. This follows earlier buyback activity, including a purchase of 1.5 million shares on 16 February and 7 million Class B shares on 21 January.

While such programs do not mechanically lift a share price, they reduce the number of shares outstanding. Market participants frequently interpret sustained buybacks as an indication that management believes the company's shares are undervalued and that its financial position is robust enough to fund the repurchases.

YU7 SUV Claims Top Sales Position

The most compelling data point comes from the sales charts. In January 2026, 37,869 units of the Xiaomi YU7 SUV were sold in China. Cited market data confirms this made the model the best-selling electric vehicle nationwide for that month. This achievement is particularly significant given the intensity of competition in China, a crucial battleground in the global EV race.

The model's success has come partly at the expense of established rivals. In the same monthly ranking, the Tesla Model Y sold 16,845 units, dropping it to seventh place. Xiaomi launched the YU7 in mid-2025, positioning it slightly below the Model Y on price. This aggressive market entry strategy now appears to be translating directly into substantial volume.

Stock Performance Shows Cautious Market Reaction

Despite these positive developments, equity market sentiment remains tempered. The shares currently trade at €3.90, representing a decline of -13.25% year-to-date and a drop of -37.28% over the past 12 months. A technical perspective reveals further weakness: the price sits roughly 25% below its 200-day moving average of €5.22, suggesting the broader downtrend remains intact.

Furthermore, the stock is trading only about 7.5% above its 52-week low of €3.62. This indicates that, despite the encouraging EV headlines, the equity remains in a zone where investors are carefully assessing whether this sales momentum can be converted into sustainable, profitable business. Correspondingly, a Relative Strength Index (RSI) reading of 63.9 suggests renewed buying interest but does not yet signal an overbought condition.

The critical factors for the coming calendar period will be Xiaomi's ability to maintain its EV sales trajectory beyond a strong January and whether the share repurchase program continues at a similar pace in the following weeks.