Xiaomi Auto ＂exploded＂, and Xiaomi Group’s share price rose by 15% in intraday trading.

On April 2, the share price of Xiaomi Group, a Hong Kong stock, opened 14.99% higher, and then fell back, with an increase of 10.31% so far.

In the news, on March 29th, Xiaomi Automobile officially announced that after 24 hours of listing, the number of Xiaomi SU7 reached 88,898. At 12 noon on April 1st, the second round of Xiaomi Auto SU7 inaugural edition was added for sale and sold out in seconds. As of the early morning of April 2, the number of locks of Xiaomi SU7 has reached 40,000. Xiaomi Auto said that the original version of Xiaomi SU7 will not open a new round of orders.

The delivery cycle of Xiaomi SU7 has been further extended. On March 31st, the delivery cycle of Xiaomi SU7 standard version after locking the order is expected to be 16-19 weeks, Pro version is expected to be delivered in 17-20 weeks, and Max version will be delivered in 26-29 weeks. By the morning of April 2, the above delivery cycle had been extended to 20-23 weeks, 19-22 weeks and 28-31 weeks respectively.

While Xiaomi SU7 is selling well, many institutions have released research reports one after another.

Goldman Sachs released a research report on Monday, saying that Xiaomi SU7 was a surprise. Although the price range of 215,900 yuan to 299,900 yuan was basically in line with the bank’s previous average price expectation, the number of large orders far exceeded expectations, and Xiaomi had the ability to become a potential price leader in the market rather than a price follower.

It is estimated that the revenue of Xiaomi will increase by 2-6% from 2024 to 2026, reaching 100,000, 170,000 and 326,000 units respectively, accounting for 1.0%, 1.5% and 2.5% of the retail sales of new energy vehicles in China. By 2030, it is estimated that electric vehicle revenue will account for 30% of Xiaomi’s total revenue.

JPMorgan Chase released a research report last week, saying that the pricing of Xiaomi SU7 is very attractive and its specifications are competitive. In view of the strong fixed figures, JPMorgan Chase believes that Xiaomi’s electric vehicle business has made a strong start, which may exceed the market’s forecast of about 50,000 units in the first 12 months, trigger a strong positive reaction of the stock price in the short to medium term, and continue to maintain Xiaomi’s "over-allocation" rating.

The listing of Xiaomi SU7 also brought a lot of pressure to many brands. On April 1st, many car companies started price wars. Among them, the starting price of the new M7 in Wenjie is lowered by 20,000 to 229,800 yuan; Tucki G9 car is limited to a maximum of 20,000 yuan; Weilai launched a subsidy of up to 1 billion yuan for oil vehicle replacement; FAW-Volkswagen will add a cash subsidy of up to 5,000 yuan in a limited time; Chery limited-time designated models are free of purchase tax and so on.

It is worth mentioning that the sales of major new energy vehicle companies increased in March. In March, the top seven brands in the new power delivery list were: Wenjie, Ideal, Zero Run, Extreme Krypton, Weilai, Tucki and Nezha Automobile. Specifically, AITO, a subsidiary of HarmonyOS Zhixing, delivered 31,727 new cars in March, winning the sales champion of China New Power brand for three consecutive months; LI delivered 28,984 vehicles, a year-on-year increase of 39.2%; The number of zero-running cars delivered reached 14,567, a year-on-year increase of over 136%.

Earlier, Cui Dongshu, secretary-general of the All-China Ride Association, once said, "2024 is a crucial year for new energy vehicle companies to gain a foothold, and the competition is bound to be fierce."

Ping An Securities’ recent research report pointed out that in 2024, the growth rate of new energy vehicle companies in the head is under pressure, so the price war will continue, especially in the mainstream price range of 100,000 yuan to 200,000 yuan. With the decrease of battery cost, car companies have more room to reduce prices.