Xiaomi's Record EV Month Collides With a 58% Profit Slide Ahead of Q3 Report
Published on 11/08/2026 at 04:52 | Editorial boerse-global.de
Xiaomi Auto handed over more than 50,000 electric vehicles in October, its strongest monthly showing of the year, the company said on 1 November without disclosing a precise figure. The record tally landed alongside a broader rally in Chinese technology names, though the stock's advance had more to do with sector-wide flows than with the delivery number itself.
Reuters put year-to-date deliveries at roughly 336,000 vehicles through the first ten months. Xiaomi is targeting 550,000 units for the full year 2026.
A Sector Rotation, Not a Solo Run
Thursday's gains came as Chinese tech stocks recovered broadly. China Daily pointed to a rotation into the sector and a previously lopsided pessimistic positioning among investors. Sentiment abroad improved after the US midterm results, and money moved out of AI names into cheaper Chinese internet and consumer plays, according to media reports. October's delivery figure was cited as a supporting company-specific factor — not the trigger for the move. The stock added 0.7% on Friday.
Should investors sell immediately? Or is it worth buying Xiaomi?
Citi Keeps Its Buy Rating, With a Caveat
Citi reaffirmed its buy recommendation but flagged a softer bottom line. For the third quarter of 2026, the bank expects an adjusted net profit of RMB 4.8 billion — a 58% drop from a year earlier. Average smartphone selling prices and margins, in Citi's view, should come in better than anticipated.
UOB Kay Hian took a different tack on Monday, trimming its price target to HK$25.90 from HK$26.20 while keeping a hold rating. Its Q3 preview projects revenue falling 6.7% year on year to RMB 106 billion.
Battery Stake on the Table
Beyond vehicles, Xiaomi is lining up a move further into the auto supply chain. As TechNode reported on 30 October, wholly owned subsidiary Hanxing Venture Capital intended to invest RMB 1.7 billion in battery maker Sunwoda EVB. Following the capital increase, Hanxing would hold a 5.34% stake. The deal still required approval from Sunwoda's shareholders, per the report.
The 24 November Test
All eyes now turn to 24 November, when Xiaomi's board is scheduled to review and approve unaudited third-quarter 2026 results. The session will also cover results for the nine months to 30 September 2026. With monthly delivery updates already in hand, the quarterly figures will give investors their clearest read yet on whether volume growth is translating into profit.
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