Xiaomi’s HK$20 Billion Buyback and Range-Extender SUV Can’t Paper Over a 365,000-Vehicle EV Gap
Published on 07/04/2026 at 15:34 | Redaktion boerse-global.de
Xiaomi is fighting on two fronts. In the stock market, it is buying back its own shares at a record pace—up to HK$20 billion over twelve months. On the factory floor, it is racing to fill a yawning gap between its electric-vehicle deliveries and an ambitious annual target. Neither effort has so far been enough to halt a near-41% slide in the stock since the start of the year.
The buyback has been aggressive: since early June, Xiaomi has scooped up 30.1 million of its own shares. That helped lift the share price 7.77% on a weekly basis to EUR 2.65. Yet the stock remains 33% below its 200-day moving average of EUR 3.97 and recently plumbed a 52-week low of EUR 2.34. Short sellers are circling; they now hold roughly 9% of the free float.
On the automotive side, the company has strung together three consecutive months of deliveries above 30,000 vehicles. An estimated 35,000 units rolled out in June alone, bringing the first-half total to around 185,000. That still leaves a daunting 365,000 vehicles needed in the second half to hit management’s full-year target of 550,000—an average of 60,000 per month, or roughly double the current run rate.
Should investors sell immediately? Or is it worth buying Xiaomi?
Xiaomi’s response is a new model family. The Skynomad N90, also known internally as the Kunlun N3, is a range-extender SUV measuring over 5.3 metres in length. A combustion engine charges the battery on the move, a design meant to ease range anxiety. Priced at around RMB 300,000, the vehicle will enter the premium segment in the second half of the year, taking on established players such as Li Auto.
Li Auto, the current market leader in the range-extender space, has been struggling itself. Deliveries of its revamped flagship L9 plunged 74% in the first four months to just 4,131 units, a sign of the brutal price war and softening demand across China’s EV market. Xiaomi is betting its own strong price-performance reputation from the SU7 and YU7 models will give it an edge.
Meanwhile, the core smartphone business is suffering a different kind of squeeze. Soaring memory-chip costs are eating into profit margins. The company has slashed its smartphone sales target from 135 million units to just 95 million for the current year. Xiaomi faces a binary choice: either memory prices fall, or it must pass the higher costs on to consumers—both uncertain paths.
The buyback alone is unlikely to trigger a sustainable turnaround. It buys the management time until the fundamental picture improves, but the heavy short interest shows professional investors remain sceptical. The real test comes on August 26, 2026, when Xiaomi reports its next quarterly results. Investors will be watching the smartphone margin and the pace of EV production closely. Until then, the stock remains caught between a record buyback and a production target that looks ever more out of reach.
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