Xiaomi shares rise due to the success of electric cars

Xiaomi has seen a sharp rise on the Hong Kong stock exchange due to the success of its first electric car, which exceeded all estimates.

Here's What We Know

Shares rose by 16% after the Beijing-based company started selling its cars. The company said it had received orders for nearly 90,000 units within the first 24 hours.

According to experts, the number of orders for SU7 models was higher than expected. This could put it on par with the Tesla Model 3 as one of the best-selling premium electric cars in China.

Goldman Sachs Group Inc. predicts that the number of orders could reach 100,000 this year, while Citigroup Inc. estimates full-year sales at around 55,000-70,000 units. The only question for Xiaomi is how quickly it can produce and deliver the cars.

The company will start deliveries to 28 cities in the coming days, said its co-founder Lei Jun. Earlier, Xiaomi promised mass deliveries by the end of April, and it is likely that the early release will be for Founders Edition cars.

Source: Bloomberg