CA - Xiaomi Isn't New Tesla - It May Be Better In Certain Things
2024-03-29 09:00:00 ET
Summary
- Xiaomi's entry into the EV market with its affordable SU7 sedan caused its shares to surge over 12%.
- Xiaomi's EV has a competitive advantage over pure-play EV companies, as it offers better performance and is backed by the company's strong financial stability.
- Xiaomi's ecosystem approach, focusing on seamless integration between devices, cars, and homes, could prove to be more sustainable and cost-effective than Tesla's approach.
- I believe Xiaomi stands poised to thrive in the competitive EV market, with ample opportunities for growth. Additionally, Xiaomi's stock is currently trading at an attractive valuation.
- For these reasons, I consider Xiaomi a "Buy" today.
My Thesis
On March 28, 2024, shares of Xiaomi Corporation ( XIACY ) ( XIACF ) surged more than 12% after the company released an electric car about $4,000 cheaper than Tesla's ( TSLA ) Model 3, according to CNBC News . They also announced a partnership with auto insurance platform Cheche Group ( CCG ), which will offer a digital SaaS service platform for auto insurance transactions with operational support, the Seeking Alpha News team reported ....
Xiaomi Isn't New Tesla - It May Be Better In Certain Things