Shares of China's Xiaomi jump 5% on news it will mass produce its own electric cars in 2024
- Xiaomi CEO Lei Jun said on Tuesday that the Chinese smartphone is expecting to mass produce its own electric vehicles in the first half of 2024.
- Xiaomi's shares in Hong Kong jumped over 5% on Tuesday.
- In March, Xiaomi announced its entrance into the electric car race and said it plans to invest $10 billion into the business over the next 10 years.
GUANGZHOU, China — Chinese smartphone Xiaomi is expecting to mass produce its own electric vehicles in the first half of 2024, its CEO Lei Jun said on Tuesday.
The comments were made during the company's investor day and confirmed later in a post by the CEO on China's Twitter-like service Weibo.
Xiaomi's shares in Hong Kong jumped over 5% on Tuesday.
In March, Xiaomi announced its entrance into the electric car race and said it plans to invest $10 billion into the business over the next 10 years. Last month, Xiaomi officially registered its electric vehicle business Xiaomi EV, Inc.
Xiaomi EV now has 300 employees, the company said in September. Lei leads the group.
China's electric vehicle market is getting more and more crowded, with the entry of new players. Chinese search giant Baidu launched a standalone electric car company in January and in February hired a CEO for that business.
When Xiaomi officially launches an electric car, it will face off against its Chinese rivals like Nio and Xpeng as well as larger automakers like Elon Musk's Tesla and BYD.
China's electric vehicle market has had favorable government support over the last few years which helped the industry grow. While some of that support has been reduced, the market is still growing.
Market research firm Canalys forecasts 1.9 million electric vehicles will be sold in China in 2021, growing 51% year-on-year.