Xiaomi Lei Jun’s chief executive speaks at a press conference in August 2023 in Beijing. The CEO enjoys the state of the stars in Chinese social media.
VCG through Getty Images
Lei Jun, founder of the Chinese Technological Giant Xiaomi, is now the fifth richest billionaire in China, as the company’s shares have gathered by 250% in the last 12 months. Xiaomi’s investors are increasingly suspended in Lei’s electric vehicles.
Lei, 55, now has a fortune of $ 35.3 billion, according to Forbes estimates. The businessman, who is chairman and chief executive of Xiaomi, had a net value of $ 10.9 billion when Forbes measured his wealth for the world’s billionaire list in April 2024. 27.2%, surpassing the profit 9.1% in the city’s SENG SENG reference index.
Lei, 55, now has a $ 35 billion wealth, according to Forbes estimates. The businessman, who is chairman and chief executive of Xiaomi, is richer than ever, as the company’s shares increased by 130% in 2024.
The race is partially guided by Xiaomi’s smartphone, which sells higher, profitable devices. Now The third largest smartphone manufacturer in the world With the market share, the company also benefits from the growing interest of investors in China’s technology companies after the release of Deepseek from a cost -effective AI model. This led investors to bet on more discoveries coming out of China, Eric Wen, head of research at Blue Lotus Capital Advisors, based in Hong Kong, according to messages sent via WeChat.
Xiaomi invests in her own AI model to help digital assistant Xiao AI smarter the company. But the main factor behind the stock market rally is a pink prospect for the company EV business. Despite the Cut-Throat competition and a relentless price war, Xiaomi is expected to meet Lei’s goal of delivering 300,000 vehicles in 2025, which Mogul announced to a January position on the Weibo Chinese platform. Last year, the company delivered more than 135,000 cars. In March, Xiaomi introduced the electric sedan su7 at a starting price of 215,900 yuan ($ 30,000), which was slightly cheaper than the starting price of Model 3 of Tesla Model 3 of 235,500 yuan. Blue Lotus Wen expects Xiaomi exceeding Lei’s goal and deliver 387,000 cars in 2025.
Yu7, an electric SUV that is expected to start summerHe is a direct competitor to Tesla’s Y model, but it can be cheaper than the start price of the last 263,500 yuan, Yale Zhang, Managing Director of the Research Society Research Society, says by phone.
In addition to competition with Tesla, Xiaomi grabs its market share from other foreign brands such as Audi, BMW and Mercedes-Benz in the world’s second-largest economy, according to Zhang. Foreign companies are struggling to sell to China’s younger generation, which not only Xiaomi’s elegantly designed vehicles, but Lei himself. Mogul enjoys the state of stars in Chinese social media, where he often interacts with users to provide product updates and request product comments.
“It’s a super seller,” Zhang says. “This is something that other emerging automakers do not have. In addition, the car itself is pretty good. It is better than products than many new and traditional automakers. ”
But Xiaomi’s shares could now be considered accurate. The Stock Exchange is negotiating in ratio of prices for 53 times in Hong Kong. The Chinese giant of Tencent web has a multiple PE from 23. Automaker byd, which overcame Tesla to become the world’s largest EV manufacturer from traditions in the last quarter of 2024, negotiates 26 times in Hong Kong.
Investors may like Xiaomi about its potential, Ke Yan, head of Singapore’s research in Dzt Research, says via WeChat. Some investors regard Xiaomi as a reserve associated with technology that offers rapid growth, which justifies its high valuation, Ke says.
In addition to maintaining vehicles, Lei said in a position of social media in February that he is studying how to boost production. Last year, some consumers had to wait up to eight months to get cars when demand far exceeds supply.
Lei’s messages probably encouraged investors by proposing an extensive and reinforced supply chain, analysts say. Blue Lotus’s Wen expects Xiaomi’s EV unit will begin to make a profit in 2026.
Currently, EV sales represented 10.5% of the company’s total revenue in the third quarter of 2024, the latest financial results available. Xiaomi saw that sales increased by 30.5% annually to 92.5 billion yuan during this period, while its net profit increased by 4.4% to 6.3 billion yuan.
“The price of Xiaomi’s share is very high, but I don’t think it has peaked,” says Wen. “Company’s competitive position on the smartphone market has improved, but the ECs are really the main reason.”
