Xiaomi Corporation unveiled its aesthetically pleasing electric vehicle. Bearing resemblances to Porsche, the vehicle was priced lower than Tesla's Model 3, highlighting the intense competition among emerging players in China's burgeoning EV market.
Xiaomi's Entry To The EV Market
During the recent two-hour event, Lei Jun, the CEO and founder of Xiaomi, disclosed the following information to an enthralled audience: the standard price of the SU7 EV model would be 215,900 yuan ($29,872.02), with the Pro and Max models priced at 249,900 yuan and 299,900 yuan, respectively. Among the attendees were executives from Chinese EV giants Nio and Xpeng.
Lei emphasized the capabilities of the SU7, claiming that it exceeded the offerings of both Tesla and Porsche in multiple respects. For example, its 700 km minimum range exceeded that of the Tesla Model 3's 567 km.
After the inaugural event concluded, Xiaomi initiated SU7 orders at 10 p.m. Beijing time, during which the company received 50,000 orders in the initial 27 minutes. The commencement of deliveries for the Standard and Max models is predicted for late April, with the Pro models to follow by the conclusion of May.
By the end of the year, 211 stores in 39 Chinese cities will carry the SU7 for sale. However, Xiaomi's international sales intentions have not yet been disclosed.
Analysts Opinion On Xiaomi's EV Initiative
Analysts are divided regarding the likelihood of success for Xiaomi's automobile initiative. Although certain individuals perceive it as an organic progression from the organization's varied range of products, others raise doubts regarding the extent to which consumers will accept Xiaomi as a high-end electric vehicle brand.
Furthermore, the SU7's introduction is timed to coincide with a period of difficulty in the Chinese automotive industry, where established competitors are steadily increasing their market dominance.
The SU7, which is powered by Xiaomi's proprietary Hyper OS, integrates flawlessly with the company's ecosystem of devices, providing users with a unified experience across their diverse electronics.
Xiaomi Stock Technical Analysis
In the daily chart of Xiaomi stock, a bullish continuation is visible, where no significant movement is seen after the SU7 launch. The recent price suggests a corrective structure within a bullish flag pattern, suggesting a pending downside correction.
The dynamic 20 day EMA is below the current price, while the RSI hovers at the 60.00 line. Moreover, the MACD Histogram reached the neutral zone, which suggests a corrective market structure.
Based on this structure, a sell-side liquidity sweep is pending, where a bearish recovery below the flag pattern with a bullish rejection from the dynamic support could be a long opportunity. On the upside, 16.70 resistance resistance would be the first target level, before reaching the 30.00 psychological line.
