Stock market: New electric car causes the value of Xiaomi shares to rise significantly

Stock market: New electric car causes the value of Xiaomi shares to rise significantly

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The announcement of his new Electric cars has caused the value of the shares of the Chinese electronics manufacturer Xiaomi to rise significantly. The price rose by up to 16 percent. Last week Xiaomi presented its new SU7 electric car model. On the first day of trading after the presentation, the Chinese company’s market value rose by around $7.6 billion to $55 billion – more than the value of traditional car manufacturers such as General Motors or Ford.

Xiaomi is primarily known as a manufacturer of smartphones and a competitor to US companies such as Apple and Google. The company generates a majority of its revenue of around $37.5 billion from the sale of cell phones. However, analysts believe that Xiaomi can assert itself in the competitive electric car market in China with the SU7 (Speed ​​Ultra 7) electric car – and it will be the first Electric car a subsidy business for the group.

According to experts, the group can afford a deficit of around 10,000 euros per car. Thanks to its smartphone expertise, Xiaomi is particularly impressive with the digital features of its vehicles. According to the company, almost 89,000 pre-orders were received in the first 24 hours for the SU7 model, which can be purchased starting at $30,000. However, customers have to wait up to seven months for their new vehicle.

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