Smartphone Maker Xiaomi Enter Mobility Race, Partners With Great Wall to Make EVs: Report
- S&P 500, Dow climb for third day and close at records
- Tesla (TSLA) China Numbers 'Robust' - Wedbush
- Apple (AAPL) Shares Seen as 'Attractive' as Recent Checks Show Continuously Strong Demand - Citi
- Investors Poured More Money Into Stocks in Past 5 Months Than Last 12 Years, Says BofA, Analysts Worried About Stretched Valuations
- Amazon.com warehouse workers vote to reject forming union in Alabama
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
Chinese smartphone maker Xiaomi will start producing electric vehicles (EVs) in partnership with Great Wall Motor Co, the largest sport utility vehicle and pick-up truck producer in China, Reuters reports.
This way, Xiaomi is the latest tech firm to join the EV race. Shares of the smartphone maker soared over 9% in Hong Kong today, while the Great Wall stock price gained about 14%.
“Xiaomi wants to find a mature automobile manufacturer to provide model infrastructure, enabling its own advantages in mobile internet technology,” said Alan Kang, senior analyst at LMC Automotive.
“Xiaomi’s advantages in operating systems and home furnishing also bring a lot of imagination for such cooperation in the future.”
Xiaomi plans to use one of Great Wall’s facilities in China to produce EVs under its own name, according to Reuters. Furthermore, Great Wall will support Xiaomi with car engineering consultancy to expedite the process.
The company will target a broader target group with its EV, as it is doing with the smartphone it produces.
The Chinese tech company announced yesterday its profit soared on the back of the decreasing market share for Huawei. The company saw its sales rose by 25% in the quarter ended December to $10.79 billion while adjusted profit soared 37%. Huawei missed on the revenue front but its earnings came in higher-than-expected.
The company has also joined other tech businesses that are struggling with the lack of semiconductors.
“To be honest, we will do our best to offer the best price we can to consumers. But sometimes, we may have to pass part of the cost increase to the consumer in different cases. We are feeling pressure, but we are looking okay,” Xiaomi’s President Wang Xiang said on an earnings call.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Mizuho Securities Starts Ameren Corp (AEE) at Neutral (correction)
- Buy the Weakness in Constellation Brands (STZ) - RBC
- Active options: AAPL TSLA FB NIO PLTR MSFT AMD T VIAC AMZN BAC SOS
Create E-mail Alert Related CategoriesCorporate News
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!