Xiaomi Joins Electric Vehicle Charging Networks

Investing.com — Chinese consumer electronics company Xiaomi (OTC:XIACF) has announced its collaboration with electric vehicle (EV) charging networks of competitors NIO, XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI). This partnership provides Xiaomi's auto business customers access to over 29,000 charging stations across China.

The announcement was made on Weibo (NASDAQ:WB) on Wednesday, where Xiaomi stated that its vehicles could now utilize more than 14,000 charging stations developed by NIO, 9,000 by XPeng, and 6,000 by Li Auto. However, further details regarding the agreements remain undisclosed.

CCB International analyst Qu Ke described these partnerships as a strategic move by Xiaomi to fully utilize available resources.

Xiaomi, initially recognized for its smartphones and home appliances, is a newer player in the world's largest EV market. Despite facing fierce competition, the company's EV sector, which launched its first vehicle in March, has displayed impressive sales performance.

In the third quarter alone, Xiaomi achieved 9.7 billion yuan ($1.33 billion) in revenue, a growth from the previous quarter. The gross profit margin of the EV business increased to 17.1% from 15.4%.

In November, Xiaomi met its 2024 delivery goal of 100,000 units earlier than expected, prompting the company to raise its annual target to 130,000 units.

Xiaomi's shares closed at 32.75 Hong Kong dollars before the Christmas holiday and have more than doubled this year, due to impressive earnings and better-than-expected performance in its EV division.

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