Xiaomi Raises $5.5 Billion to Expand Electric Vehicle Production After SU7 Success

Xiaomi has raised $5.5 billion through a share issuance to support its electric vehicle division. The company sold 800 million shares at HK$53.25 each, exceeding the initial offering of 750 million. The funds will support growth in the electric vehicle sector, driven by the success of the SU7 electric sedan. The share price reflects a 6.6% discount from the closing price on March 24. Xiaomi also acquired 52 hectares of land in Beijing to expand its electric vehicle production capacity, aiming to increase annual production to meet demand for the SU7. CEO Lei Jun has revised the 2025 sales target to 350,000 units, up from 300,000. In 2024, the electric vehicle division generated revenues of approximately $4.4 billion with over 135,000 vehicles delivered. Xiaomi plans to export its vehicles starting in 2027 and will allocate 25% of its 2025 R&D budget to artificial intelligence.