Xiaomi just built its 500,000th electric car

The world of electric cars is known for its dizzying speed - not just the cars themselves, but the pace at which new brands pop up and start to challenge the old guard. And while some of those newcomers fail and disappear, no company challenges the establishment more than Xiaomi.

The Chinese tech giant, famous for its phones and smart devices, just announced it has built its 500,000th vehicle. Remember - this isn't a slow, century-old auto maker we're talking about. Xiaomi reached this massive production number in only one year and seven months after its very first car rolled off the line. That kind of speed makes them one of the fastest companies in the world to hit such a milestone.

The company formally jumped into the automotive world back in March 2021, but it was the launch of its first model, the SU7 electric sedan, that really kicked things off. Launched in March 2024, the SU7 is their direct rival to a certain other famous electric sedan, and it comes in several versions. To cover all the bases, Xiaomi also introduced the YU7 in June.

The production milestone might be impressive, but it only tells half the story. Deliveries are even more important, since they actually reveal how many people buy these EVs. In 2024, Xiaomi's first year of sales, 135,000 vehicles found buyers. Fast forward to today, and the company has already delivered 315,376 electric cars between January and October.

Breaking that down, the company delivered a record 108,796 vehicles in the third quarter alone, marking a massive 173.43 percent jump from the same time last year. Just last month, the company delivered 48,654 units, showing that the appetite for their EVs is as strong as ever.

Company founder, chairman, and CEO Lei Jun stated that Xiaomi EV expects to exceed 400,000 total deliveries in 2025. That's a big increase from their earlier goal of 350,000 units. The 500,000th vehicle that rolled off the production line is expected to be delivered within days, showing that the sales pipeline is just as quick as the factory line.

Moving from making phones to making cars is expensive, but the gamble is paying off. Xiaomi's innovative businesses - which mostly means its EV division - became profitable for the first time in a single quarter. In the third quarter, this new venture posted a net income of RMB 700 million (about $98.4 million). Out of the RMB 29 billion in revenue this business segment made, the EVs accounted for a stunning RMB 28.3 billion, proving that the car-making side is now the biggest money earner in the innovative division.

Of course, the market is a bit like a moody teenager. Even with this incredibly good news, Xiaomi's Hong Kong-listed shares showed weak performance, falling by 2.22 percent. It seems investors are worried about competition in the wider Chinese EV industry and other parts of the company's business, causing the stock to drop 33 percent over a two-month period. Apparently, even setting production records and turning a profit isn't quite enough to make everyone happy.

The journey from a smartphone company to a top-tier EV builder has been exceptionally fast for Xiaomi. Their success story serves as a major lesson for the entire industry: building high-quality, high-demand electric cars is no longer reserved for traditional car brands. They have achieved their 500,000 production milestone and are poised to deliver over 400,000 units this year, a bold target that puts them right in the thick of the global EV race.

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