What?
Rumors were swirling that Xiaomi EV intended to acquire a 58.5 percent stake in Evergrande NEV to utilize its factories. However, Xiaomi has officially denied any plans to acquire or take a controlling stake in Evergrande NEV.
Why does it matter?
The rumors sparked concern in the market but were quickly dispelled by a statement from a Xiaomi spokesperson on Weibo. Xiaomi EV is focused on utilizing its existing factories to boost production capacity, with ambitions to deliver 100,000 units in 2024 and challenge a 120,000-unit delivery target.
Xiaomi’s entry into the electric vehicle market has been met with enthusiasm, as evidenced by the high acceptance of its first model, the SU7. The sedan has seen significant demand, leading to waiting times of at least 30 weeks for customers placing new orders.
How is it going to shape the future?
While speculation around acquisitions and stake sales may cause fluctuations in market sentiment, Xiaomi’s commitment to expanding production capacity and meeting delivery targets demonstrates its determination to establish a strong presence in the EV sector. By leveraging existing resources and focusing on innovation, Xiaomi EV aims to continue its success in the competitive electric vehicle market.