Xiaomi Unveils First Electric Vehicle to Compete with Tesla

Xiaomi, the renowned Chinese smartphone company, made an exciting announcement on Thursday as it revealed its first-ever car. With aspirations to compete in the high-end electric vehicle market, Xiaomi draws inspiration from the likes of Tesla.

During the event, Xiaomi founder Lei Jun shared that their new car, named the SU7, would employ a Tesla-like casting method for its body. Moreover, it would incorporate components from reputable suppliers such as Nvidia, Qualcomm, and Bosch. Lei expressed Xiaomi's vision to create a dream car that could rival industry giants Porsche and Tesla.

While pricing details for the SU7 remain undisclosed, Xiaomi plans to offer two models. The first is a rear-wheel drive vehicle with an impressive driving range of up to 668 kilometers (415 miles) on a single charge. The second is a four-wheel drive vehicle with an even more remarkable range of up to 800 kilometers (498 miles).

On Thursday, Xiaomi's stock experienced a slight decrease of 0.3% in Hong Kong.

Xiaomi initially revealed its electric vehicle plans in 2021, outlining a substantial investment of $10 billion in this endeavor. Despite the unconventional crossover between a smartphone manufacturer and an electric vehicle producer, Xiaomi is not alone in recognizing the potential of this combination. Chinese electric vehicle manufacturer NIO recently entered the smartphone market to cater to consumer demand for seamless integration between smartphones and automotive technology.

In premarket trading, American depositary receipts of NIO saw a 1.4% increase, while Tesla's stock rose by 1.0%.