For those who have tried it, xiaomi Smartphones know that they are worthy competitors to the iPhone. The question now is whether Xiaomi will mount a similar challenge to Tesla.
On Thursday, the Chinese giant launched its first electric car, the SU7 sedan.Lei Jun, a well-known billionaire founder and CEO in ChinaSaid At a presentation in Beijing: „Many people ask me who is Xiaomi SU7 made for? My answer is: „Isn't it time for Tesla Model 3 users to upgrade?“
For Elon Musk's automaker, it comes at a time when it is once again difficult for wealthy rivals to enter the Chinese market.Last week, Bloomberg reported that Tesla Decrease in EV production At the Shanghai factory amidst fierce competition and slowing growth in China.Tesla's market capitalization has fallen about 30% this year, which is why the company's Abandoning Mr. Musk's „no advertising“ credo.Tesla also faces competition from a Chinese company backed by Warren Buffett BYDwhich was dethroned as the world's top EV seller a few months ago.
Of course, Tesla has already proven itself as a leading EV manufacturer, but Xiaomi is a newcomer in this space.
“The thing I realized the most in the three years I worked on this car was that it's very difficult to build a car,” Ray said. Said on Thursday. „Even if you're like a giant, apple I gave up on that. ”
In February, Ray responded to Apple's decision to end its EV project:shocked” by the decision. He cites Apple co-founder Steve Jobs as his main inspiration for becoming an entrepreneur.
Xiaomi also makes smart TVs and home appliances, and is as popular as Apple in China.
Lei claimed on Thursday that the SU7 outperforms the Tesla Model 3 in 90% of its specs and that it will take Xiaomi a few more years to catch up with the rest. He said the sedan's minimum range is 700 kilometers, compared to the Model 3's 606 kilometers (about 435 miles). The base model will be sold in China for less than $30,000, which is cheaper than the Model 3.
Mr Let admitted that his company will be losing money on every vehicle it sells for the foreseeable future. In December he Said Xiaomi will spend 10 times the labor and investment that automakers typically put into new models, he said.But he Added „Xiaomi has sufficient cash reserves to handle any intense competition over the next five years,“ he said on Thursday.
Time will tell whether Ray made the right decision to enter the competitive EV market, or whether he should have changed direction like Apple.Many EV startups were once worth billions of dollars. I'm having a hard time right now.
„The risk is that they become too focused on the EV space and lose focus on the sector and products that got them there,“ said Tu Le, founder of consultancy Sino Auto Insights. Said Reuters.
However, Xiaomi strong startat least the company reported receiving firm orders for 120,000 units of the SU7 in 36 hours, meaning this year's production capacity is sold out.