Xiaomi disclosed that it experienced an adjusted loss of $252 million in the second quarter, attributed mainly to its initial electric vehicle operations as it ramped up production.
The Speed Ultra 7, Xiaomi's first car, holds promise with 90,000 preorders, but the company faces high per-car losses, averaging $9,200 per vehicle sold.
With a gross profit margin of 15.4%, Xiaomi hopes to increase production to 10,000 vehicles monthly, indicating a strategic focus on reducing costs through scaling production.
Citibank analysts predict Xiaomi will only see profits after annual sales reach between 300,000 and 400,000 units—a significant target for the burgeoning EV segment.
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