Xiaomi Shares Jump 9% as Strong EV Orders Boost Sentiment

Xiaomi's shares surged nearly 9%, reaching a level not seen in nearly three months, following the announcement of strong orders for its SkyNomad electric vehicle model. The Chinese EV maker reported that the SkyNomad model garnered over 70,000 orders within the first month of its launch, a figure that has bolstered investor sentiment.

This positive development comes at a challenging time for Xiaomi, as the company has been grappling with rising raw material costs and heightened competition within the domestic market. Moreover, concerns have been mounting regarding Xiaomi's ability to meet its annual EV delivery targets. Despite this, the strong SkyNomad demand, according to Goldman Sachs Group analysts, suggests broad support for Xiaomi's EV growth narrative.

The note from the analysts, which include Timothy Zhao, noted that while the headline figures might not meet the market's most optimistic forecasts, the disclosure remains largely favorable for Xiaomi's EV strategy. Xiaomi is not alone in this EV sector boom; peers BYD and Li Auto also experienced gains, with both companies advancing more than 4% in Hong Kong.