Xiaomi to invest $10 Billion in New Electric Vehicle Unit over 10 years
Xiaomi Corporation is planning to invest $10 billion for the new smart electric vehicle (EV) business, the company announced on Tuesday.
The firm will initially invest 10 billion yuan ($1.52) in the unit, with a total investment goal of $10 billion over the next 10 years, it said in a filing published earlier on the Hong Kong stock exchange.
“The decision was made after numerous rounds of deliberation among all our Partners, and this will be the final major entrepreneurial project of my life. I am willing to put all my personal reputation on the line and fight for the future of our smart electric vehicle! I am determined to lead my team to fight for the success of the Xiaomi electric vehicle,” said Lei Jun, Founder, Chairman, and CEO of Xiaomi.
I announced a major decision on the launch event tonight:
Xiaomi is officially entering the smart electric vehicle industry. I’ll lead the project myself and we will have RMB 10 billion for first round investment, USD 10 billion for long-term investment across the next decade. pic.twitter.com/NzfgqLX2AJ— Lei Jun (@leijun) March 30, 2021
During the press event, Xiaomi also announced the release of a self-developed computing chip. Known as the Surge C1, the Surge C1, the chip is an image signal processor (ISP), used to enhance a phone’s ability to process high-resolution images and video.
On the other hand, according to its latest financial results, Xiaomi’s global smartphone shipments reached 146 million, upholding the company’s position in the top 3 globally. The sales of premium smartphones have exceeded 10 million units. TV sales have topped the Mainland China market for 8 consecutive quarters. And with over 324.8 million connected devices on Xiaomi’s AIoT platform and monthly active users for Xiaomi AI Assistant reaching 86.7 million, Xiaomi continues to lead the smart home industry. By the end of 2020, the Group held a cash reserve of RMB 108 billion.
