Shares of China’s Xiaomi jump 5% on news it will mass produce its own electric cars in 2024
Xiaomi CEO Lei Jun holds a press conference about Xiaomi’s new logo and Xiaomi’s car building on March 30, 2021 in Beijing, China.
VCG | Visual China Group | Getty Images
GUANGZHOU, China — Chinese smartphone Xiaomi is expecting to mass produce its own electric vehicles in the first half of 2024, its CEO Lei Jun said on Tuesday.
The comments were made during the company’s investor day and confirmed later in a post by the CEO on China’s Twitter-like service Weibo.
Xiaomi’s shares in Hong Kong jumped over 5% on Tuesday.
When Xiaomi officially launches an electric car, it will face off against its Chinese rivals like Nio and Xpeng as well as larger automakers like Elon Musk’s Tesla and BYD.
China’s electric vehicle market has had favorable government support over the last few years which helped the industry grow. While some of that support has been reduced, the market is still growing.
Market research firm Canalys forecasts 1.9 million electric vehicles will be sold in China in 2021, growing 51% year-on-year.