While many electric vehicle manufacturers face challenges with demand, Chinese technology giant Xiaomi is demonstrating remarkable strength in the sector. The company has reported delivering over 30,000 vehicles for the second consecutive month in August, defying broader market trends and establishing itself as a serious contender in China’s competitive EV landscape.
Production Capacity and Expansion Plans
Xiaomi’s manufacturing operations are currently operating near maximum capacity in its initial production phase, which has an annual output capability of 150,000 vehicles. To address the overwhelming demand and extended wait times, the company has initiated aggressive expansion plans:
- Development of a second production phase is underway
- Planning for a third manufacturing facility is already on management’s agenda
- The sales and service network is being rapidly expanded with dozens of new locations
SUV Model Drives Unprecedented Demand
The remarkable success is largely attributed to the company’s SUV model, which has generated exceptional market response. Customer demand has been so substantial that delivery wait times have extended to as long as 56 weeks. This enthusiastic reception indicates that Xiaomi has successfully identified and captured a significant market opportunity, effectively competing against established automotive manufacturers.
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Market Performance and Technical Indicators
Investors have responded positively to these operational achievements. Xiaomi shares currently trade at €5.89, hovering near the 100-day average of €5.90. The stock has delivered impressive returns, gaining over 37% since the beginning of the year and surging 166% over the past twelve months.
Despite these gains, the share price remains 16.6% below its 52-week high of €7.07. Technical indicators show a Relative Strength Index reading of 82.7, suggesting the stock may be in overbought territory. Market observers are questioning whether the company’s current operational momentum can overcome this resistance level.
Xiaomi’s consistent monthly delivery figures provide compelling evidence that its electric vehicle strategy is proving successful. The sustainability of this growth trajectory will ultimately depend on the company’s ability to scale production capabilities to match the robust market demand.
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