Background of the Incident
On the afternoon of March 30, an announcement by Xiaomi Group put an end to the much-debated question of whether Xiaomi would enter the car manufacturing business: Xiaomi plans to establish a wholly-owned subsidiary to oversee its smart electric vehicle business. The initial investment will be RMB 10 billion, with an expected total investment of USD 10 billion over the next decade. Mr. Lei Jun, CEO of the group, will also serve as the CEO of the smart electric vehicle business.
At the press conference that evening, Lei Jun stated that he would personally lead the team, staking his track record and reputation on what he described as his last major entrepreneurial endeavor—fighting for Xiaomi's automotive ambitions.
Market Impact
The rumor about Xiaomi Group entering the car manufacturing business has been confirmed, causing its Hong Kong-listed stock price to soar sharply in the final trading session on Tuesday. On Wednesday, Xiaomi opened more than 2% higher, with related stocks surging at the start of trading; however, Xiaomi reversed course in the afternoon and closed with a slight increase of 0.59%.
Fellow investors are all paying attention.
The news about 'Xiaomi's car manufacturing' has been repeatedly rumored and repeatedly denied, becoming a sort of 'ongoing series' within investor circles. Even before the official announcement, there was already widespread discussion: the possibility of Xiaomi entering car manufacturing; when Xiaomi would enter the market; could Xiaomi succeed in car manufacturing?
Regarding Xiaomi's car manufacturing, nearly 80% of fellow investors in the community hold an optimistic attitude.
Yesterday, the rumors about car manufacturing were confirmed, and the suspense finally ended. Xiaomi officially joined the crowded race of car manufacturing, where leading players enjoy the limelight while elimination is accelerating. Fellow investors now have a new focal point for discussion: what does Xiaomi’s announcement of entering car manufacturing mean for Xiaomi itself?
Next, let’s take a look at the brilliant insights from fellow investors!
@辉常观察