Xiaomi's.. interesting article including a few comments.
($1 = 7.2277 Chinese yuan renminbi).. the $US is strong!
With China EV launch, Xiaomi's 'Thor' takes on Elon Musk
By Sarah Wu
BEIJING (Reuters) - He was called China's answer to Steve Jobs for taking Xiaomi from scrappy startup to an electronics giant known for its smartphones.
With the launch of a much-hyped and against-the-odds electric car, Lei Jun, Xiaomi's co-founder and CEO, is taking on Elon Musk with a strategy that takes a page from Tesla's playbook.
Lei, 54, took the stage in Beijing on Thursday to unveil Xiaomi's SU7 car, a project three years in the making that has attracted a lot of attention but which, Lei has warned investors, will lose money.
During Thursday's two-hour event - a livestream millions of Chinese tuned in to watch - Lei made a jibe at Apple for dropping its car project and declared Xiaomi's EV superior to Tesla's Model 3.
Fans dubbed the Xiaomi CEO "Thor" on social media, a play on his surname which means thunder in Chinese. Some commented that his outfit - a grey blazer over a black t-shirt - looked like something Musk would wear.
HANGZHOU, CHINA - MARCH 28: Xiaomi's new energy vehicle SU7 is displayed at a Xiaomi store on March 28, 2024 in Hangzhou, Zhejiang Province of China. The Xiaomi SU7 was officially launched on the night of March 28.
(Photo by VCG/VCG via Getty Images) (VCG via Getty Images)
Already a household name in China, Lei's marketing strategy for his EV borrows directly from Musk, said Yale Zhang, managing director at Automotive Foresight.
"One person equals an entire marketing team," Zhang said. "With every word he says, the attention he attracts online is of a different magnitude."
Born in central China, Lei graduated from Wuhan University with a degree in computer science before working his way up to become chief executive of software firm Kingsoft.
In 2010, he co-founded Xiaomi. By 2014, the tech startup had a valuation of $46 billion.
The Beiijng-based company has grown with the popularity of its smartphones and home appliances, beloved in Chinese households for their affordability and sleek styling.
Last year, Xiaomi launched more expensive smartphones to compete with Apple's iPhone, but Lei's decision to sell a sporty EV that draws styling cues from Porsche will test the Chinese company's ability to shift to a new, premium market.
In 2021, Lei announced Xiaomi would build its own EV, an undertaking he said then would be "the last major entrepreneurship project" of his life.
"In the three years of developing this car, my biggest realization is that making cars is extremely difficult,” Lei said on Thursday. "Even a giant like Apple gave up on it."
FILE PHOTO:
CEO Lei Jun unveils Xiaomi's first electric vehicle, the SU7, in Beijing, China
BEIJING BACKINGThe SU7 - short for Speed Ultra 7 - enters a crowded China EV market with an attention-grabbing price tag, under $30,000 for the base model, cheaper than Tesla's Model 3 in China.
Xiaomi built a Beijing factory capable of producing 200,000 cars annually before it had regulatory approval to start manufacturing in China. State-owned automaker BAIC Group disclosed in November it would make the cars for Xiaomi - at the same Xiaomi plant.
Xiaomi, which plans to sell the SU7 only in China for now, did not immediately respond to a request for comment.
Lei said without the support of the Beijing authorities, it would have been "impossible" to complete the car in three years, according to a transcript posted by auto blogger Chang Yan, who was among a group of Chinese reporters invited to interview Lei on Thursday.
Musk also won support from the Shanghai government when setting up the Tesla factory there. The construction of Tesla's Shanghai plant took less than a year after it broke ground in 2019.
Analysts remain split on whether Lei's project will go beyond creating buzz to make money in a hyper-competitive EV market. "The risk is that they focus too much on the EV space and lose focus on the sectors and products that got them there,” said Tu Le, founder of consultancy Sino Auto Insights.
Lei said he had originally planned to sell the high-end version of the SU7 for around $48,500 before cutting that to about $41,500 as other automakers slashed prices.
"Xiaomi has enough cash reserves to cope with any fierce competition in the next five years. And if it is possible, Xiaomi will look for ways to accumulate more cash," Lei said.
Xiaomi said it had received 50,000 orders in the first 27 minutes of the SU7 going on sale. The company had not posted an updated number on Friday.
($1 = 7.2277 Chinese yuan renminbi)
finance.yahoo.com
Darrin S
7 minutes ago
Reminds me of the car commercial in Robocop… 6000 SUX
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Rich C
23 minutes ago
State backed (State Run) as is every notable business in China like Evergrande was before it had its massive collapse. Alibaba was introduced with Jack Ma at the helm. Same entrepreneur story, when in fact he was a member of the CCP. When Ma stepped out of line believing he could do things as he wi...
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mark
23 minutes ago
Rivian and Fisker struggling does not bode well for EV startups. Both have attractive products that were well financed from the start. I think the EV market will always be a small niche and they should focus on attractive hybrids..
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JS
1 minute ago
I have always said that it is easier to say that you are going to sell EVs than doing so. You need a huge supply chain for batteries - which is not so easy. Tesla has invested in this over many years.
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q
29 minutes ago
the EV fad is over!
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roadslug
38 minutes ago
People here don't want EVs let alone chinese EVs. Imagine trying to get one serviced
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Mohican
46 minutes ago
Translation: we don’t like Elon because he bought X and did not silence the right. China joe will take care of it
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Peter
46 minutes ago
a lot of sour grapes here.
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LeverageAndBeverages
50 minutes ago
China is good at ripping off real innovater's technology and making cheap junk copies of the world's products.
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david
11 minutes ago
Example: Beloit corporation manufactured machinery for paper mills. They sold a machine to China, last machine they sold. China took the machine apart, reverse engineered it, and started selling their version of the same machinery. It put Beloit corporation out of business.
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Frank
1 hour ago
Sure, a phone maker thinks it's going to compete
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Crime Cinema
1 hour ago
so you stole Tesla's tech and with CCP money you built cheaper Teslas. Got it. The Chinese always act like they have an original thought in their head.
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qu
1 hour ago
dont let jealousy stunt your growth
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Peter
1 hour ago
no need to be jealous of an successful entrepreneur who you cannot be compared with. You are nothing.
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JS
1 hour ago
I think it is a tough market for any company to compete in when you are a foreigner. Moreso than most places.
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