Xiaomi (OTC: XIACF) is poised to accelerate its electric vehicle (EV) production in 2025 after exceeding delivery expectations in 2024, according to a note from Morgan Stanley (NYSE: MS). The Chinese tech giant has raised its 2025 delivery target to 300,000 units, up from its earlier projection of 250,000, marking significant growth in its nascent EV segment.

Key Developments

2024 Performance Highlights

• Xiaomi delivered over 135,000 EVs in 2024, surpassing its annual target and reflecting strong demand.
• The company's first flagship model, the SU7, played a significant role in capturing market share in China's competitive EV market.

2025 Outlook

• Increased Production: Morgan Stanley anticipates that Xiaomi will further expand its production capacity, aligning with its revised delivery target.
• New Models: Xiaomi plans to launch the SU7 Ultra and YU7, which are expected to offer a positive product mix shift with higher average selling prices.
• Market Positioning: Xiaomi aims to become one of the largest EV makers globally, leveraging its technological expertise and innovative product lineup.

Analyst Perspective

Morgan Stanley analysts maintain an Overweight rating for Xiaomi, with a price target of HK$35, suggesting limited upside of 1% from current levels. They emphasized:

• Excellent Execution: Xiaomi's ability to surpass its 2024 targets demonstrates its effective entry into the EV sector.
• Growth Potential: The addition of premium models will likely drive revenue growth in 2025.

Broader Context

Competitive Chinese EV Market

Xiaomi faces intense competition from established players like BYD (SZ: 002594) and Nio (NYSE: NIO). However, its strong delivery performance and expanding lineup underline its rapid progress.

Sector Performance

Explore the financial metrics of Xiaomi and its competitors through:

• Earnings Calendar API for tracking earnings events.
• Key Metrics (TTM) API for assessing Xiaomi's growth trajectory.
• Financial Growth API to analyze year-over-year performance trends in the EV sector.

Conclusion

Xiaomi's evolving EV strategy, bolstered by new product launches and increased production capacity, underscores its ambition to become a key player in the global EV market. While the competition remains fierce, the company's strong execution and innovative product mix position it for sustained growth in the coming years.