Xiaomi raises $5.5 billion in share sale amid EV push
Xiaomi is targeting its nascent EV business to propel growth and has raised its EV delivery target for 2025. The Chinese tech giant is also expanding the size of a planned second factory in Beijing.
China’s Xiaomi raised about USD 5.5 billion in an upsized share sale as the tech giant takes advantage of a spike in its stock price to raise funds to boost its nascent EV business.
The offering comes weeks after Chinese EV firm BYD’s USD 5.6 billion fundraising, fuelling further optimism on what has been a good year at the Hong Kong stock exchange, according to a report by Bloomberg.
Xiaomi is targeting its EV business to propel growth and has raised its EV delivery target for 2025. According to earlier reports, the company is also expanding the size of a planned second factory in Beijing.
Xiaomi, the world’s third-largest smartphone maker, made a foray into EV manufacturing just last year with the launch of the SU7 sedan. Last week it reported a nearly 50% jump in fourth-quarter revenue and raised its target for EV deliveries this year from 300,000 to 350,000, according to Reuters.
It reported USD 4.4 billion in revenue for its EV business in 2024, delivering over 135,000 SU7 sedans. The company aims to start shipping cars overseas by 2027.
Samsung Electronics Chairman Jay Y. Lee and Xiaomi CEO Lei Jun recently met in Beijing amid reports of a possible collaboration between the two companies on electric vehicles.
According to some analysts, as reported by NEWSIS, an alliance of sorts may be taking shape among Samsung, Xiaomi and Qualcomm in the automotive electronics sector after Samsung’s MOU with Qualcomm to supply OLED displays for EVs.
