Xiaomi’s management is sending a clear message to the market: the stock is too cheap. On April 23, the company spent roughly 146 million HKD to repurchase 4.7 million of its own B-shares on the Hong Kong Stock Exchange. The buyback came just one day after a similar 4.5 million-share purchase on April 22, underscoring a growing sense of urgency from the boardroom.
The timing is telling. Xiaomi’s shares are hovering at 3.39 euros on German exchanges, barely above the 52-week low of 3.38 euros hit on April 15. That marks a roughly 50% plunge from the stock’s annual peak. Year-to-date, the equity has shed around 25% of its value, and over the past twelve months, the decline has deepened to nearly 40%.
A Hypercar Debut Steals the Show
While the stock languishes, Xiaomi is pulling out all the stops on the product side. At the Auto China 2026 show in Beijing, the company unveiled the Vision Gran Turismo Concept — a hypercar that first appeared at the Mobile World Congress in Barcelona back in February. The significance is hard to overstate: Xiaomi is the first Chinese company ever invited to participate in the Vision Gran Turismo project, a program that has previously included only Ferrari, Porsche, and Mercedes-Benz.
The engineering specs are eye-popping. The concept rides on a 900-volt silicon-carbide platform with four electric motors, producing over 1,000 kilowatts. It can sprint to 100 km/h in roughly one second and top out above 350 km/h. Gran Turismo producer Kazunori Yamauchi singled out the design for praise, particularly how Xiaomi resolved the inherent trade-off between aerodynamic drag and downforce.
A production version is not in the cards. The hypercar is purely a technology showcase — a statement of intent rather than a commercial product.
The Hybrid Pivot and a Sales Slump
Beyond the concept, Xiaomi displayed its full production lineup — the SU7, SU7 Ultra, and the new YU7. But the more consequential strategic shift is the company’s first foray into hybrid powertrains, marking a departure from its previous all-electric focus.
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The operational picture, however, is mixed. Xiaomi Auto delivered over 39,000 units in January alone, and the revamped SU7 launched in mid-March at a base price of roughly 28,000 euros, racking up more than 30,000 firm orders within days. Yet the wholesale sales of the SU7 collapsed in March to just under 7,900 units — a staggering 73% drop month-over-month. That is not an isolated blip but a symptom of the brutal price war engulfing China’s electric-vehicle market.
Xiaomi is trying to fight back with product improvements rather than price cuts. The company rolled out an over-the-air update that lowered the activation threshold for certain driver-assistance features from 1,000 kilometers to 300 kilometers, giving new customers faster access to AI-powered functions. Whether that will be enough to fend off Huawei is an open question. Huawei’s HarmonyOS mobility platform delivered roughly 113,000 units in the first quarter of 2026, a nearly 42% jump year-over-year.
Buybacks as a Bulwark
The buyback spree signals that management sees the current valuation as disconnected from the company’s fundamentals. Since the start of the year, Xiaomi has funneled around 4.7 billion HKD into share repurchases through the end of March. The company’s liquidity remains robust, setting it apart from some cash-strapped rivals in the hypercompetitive EV space.
Still, the technical picture is complicated. Despite the relentless slide, the stock’s relative strength index (RSI) stands at nearly 80, indicating it is technically overbought in the near term — an unusual dynamic for a stock trading near its 52-week low.
Europe Beckons
On the horizon, Xiaomi is laying groundwork for a European expansion. The visit of Spanish Prime Minister Pedro Sánchez to Xiaomi’s Beijing headquarters has fueled speculation that Spain could become a production hub. The company has not disclosed any concrete timeline or investment figures, but the diplomatic signal is hard to ignore.
The next major test for investor confidence will be the April sales report. That data will reveal whether March’s plunge was a one-off correction or the beginning of a more troubling trend in Xiaomi’s automotive ambitions.
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