China’s fifth-largest smartphone maker Xiaomi (XIACY, XIACF) will begin delivering its electric vehicle later this month with its first entry into the competitive EV market.
Shares rallied 10% on the news.
The company unveiled its Speed Ultra 7, or SU7, in December, making the ambitious claim that the vehicle had better acceleration than a comparable Tesla (TSLA) and Porsche (OTCPK:POAHY) SUV.
Using a Chinese poem as an allegory, Xiaomi (XIACY, XIACF) founder Lei Jun said “With firm strides we are crossing its summit,” as the car marks a “significant leap from the smartphone industry and a crucial step toward closing the loop of the Human x Car x Home smart ecosystem.”
“Xiaomi has decided to invest tenfold [in the car’s development] starting from the development of fundamental core technologies, committing to constructing an outstanding vehicle. Through 15-20 years of effort, Xiaomi aims to become one of the top five global automakers,” Lei added.
The SU7 will be built by a unit of state-owned car manufacturer BAIC Group in Beijing.
Xiaomi (XIACY, XIACF) will announce the sticker price of the SU7 on March 28.