Xiaomi Shares Surge as China EV Sales Overtake Tesla

On 10 November 2025, data from the China Passenger Car Association revealed a sharp shift in the Chinese electric-vehicle arena. While Tesla sold only 26,006 units in China that month, marking its lowest monthly total in three years, the Xiaomi EV arm recorded 48,654 retail sales in October. That changing tally hints at something big: a tech-giant turned auto-maker is now challenging a global EV leader at home. 

Xiaomi’s rise from smartphones to smart-cars provides more than a dramatic headline. It shows how price, connectivity and local brand trust are reshaping mobility in China. And it suggests that the EV race is no longer just about charging range and motors, it’s about ecosystem, software, and culture. As Xiaomi’s shares surged on the news, analysts watching the market say this could be a turning point in how electric cars are made, sold and perceived.

Background: Xiaomi’s Move from Smartphones to EVs

Xiaomi began as a phone maker. It built a loyal user base with low prices and smart features. The company then set its sights on cars. Xiaomi Auto launched the SU7 sedan and the YU7 SUV in 2024-2025. The firm used its phone and internet know-how to add connected features. It also pushed software updates for cars like it does for phones.

Xiaomi backed the effort with big factory deals and supply-chain access. The move aimed to turn Xiaomi into a full tech ecosystem that spans home devices and mobility. Early demand for the YU7 and SU7 made investors take note. By mid-2025, Xiaomi’s auto plans shifted from experiment to core growth bet.

China’s EV Market Landscape

China is the largest EV market on Earth. Local brands lead in volume and new tech. Government policies and subsidies helped this growth. But some incentives have been trimmed in 2025, which cooled demand in parts of the market. Still, domestic names such as BYD, Nio, Li Auto, XPeng and newcomers like Xiaomi keep expanding. 

Consumers favor brands that combine value, features and strong after-sales networks. That trend hurt some foreign players, since price and local trust matter more now. The market also shifted toward exports, with several makers sending more EVs overseas in 2025.

Xiaomi’s Breakthrough Performance

Official CPCA figures released on 10 November 2025 showed Xiaomi’s deliveries jumped in October. Xiaomi recorded 48,654 retail deliveries that month. Tesla’s retail sales in China fell to 26,006 units in October. Those numbers reflect a movement in consumer choice and supply patterns in China.

Xiaomi’s rise rests on strong orders for the YU7 SUV and steady demand for the SU7. The company’s pricing undercut some rivals while offering high-tech features. That mix accelerated sales and pushed it toward the top ranks in monthly NEV deliveries.

Tesla’s Challenges in China

Tesla’s October drop marked its lowest monthly China retail figure in three years. The company also increased exports from its Shanghai plant in October, which masked weaker domestic demand. Several issues weighed on Tesla. Local competition intensified. Price sensitivity rose. Some buyers shifted to models that better matched local tastes and tech expectations. 

Tesla’s market share in China slid sharply in October, and the brand fell out of the CPCA top ten for monthly NEV retail market share. This shift forced investors and managers to rethink local tactics.

Strategic Advantages Behind Xiaomi’s Success

Xiaomi blends hardware, software and services. The cars connect with a wider ecosystem of phones and home gadgets. This integration appeals to loyal consumers. Xiaomi also leveraged its supply chain and cost efficiencies to offer competitive prices. Its focus on user interfaces, OTA updates and smartphone-style features gave its cars a tech feel at lower cost. 

The company relied on digital marketing and strong preorders. Some analysts used AI tools to model how these factors might affect margins and stock moves. Local production and government support further helped scale deliveries quickly.

Global Implications

Xiaomi’s domestic gains matter beyond China. If the firm keeps scaling, it could export more models and challenge incumbents in Asia and Europe. Global automakers will likely watch pricing and software strategies closely. 

Tesla may focus on feature upgrades, price moves or local partnerships to respond. The rise of Xiaomi signals a shift where tech firms can turn their device ecosystems into viable auto platforms. That trend could force global brands to rethink product roadmaps and software-first strategies.

Investor and Market Outlook

Investors reacted quickly to Xiaomi’s sales streak earlier in 2025. The stock rallied after early order reports, and it has seen strong volatility tied to delivery updates and safety headlines. Analysts now weigh rapid growth against margin pressure. 

Building cars at scale often squeezes profits at first. Risks include production problems, safety incidents, and tougher regulation. There is also the chance that consumer demand softens as subsidies fade. Still, if Xiaomi can keep costs down and retain user trust, its EV unit could add significant long-term value to the company.

Wrap Up

Xiaomi’s October performance confirmed on 10 November 2025 marks a notable moment in the EV race. The company shows how a tech brand can enter auto and win on value and connectivity. Tesla’s weaker month highlights how fast the Chinese market can change. Going forward, competition will intensify. Prices and software will matter more than ever. Global players must adapt or risk ceding ground to nimble, locally rooted challengers. The next months will be crucial for both market share and investor confidence.

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Disclaimer: The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.