Xiaomi’s electric vehicle unit turns profitable with the SU7, while its AI model leads global usage charts at a massive cost, creating a complex investment story.
Xiaomi Corporation is experiencing a tale of two businesses. While its newly profitable electric vehicle division is finally delivering black ink, its surprise dominance in the artificial intelligence sector is raising questions about its ultimate payoff. This strategic duality is playing out in the company’s share price, which gained over 5% to €3.59 today, even as it remains nearly 20% down for the year and 46% off its 52-week high.
The automaker side of the equation is showing tangible results. For the full year 2025, Xiaomi’s auto segment generated an operating profit of approximately €113 million on revenue of €13 billion. The new SU7 model is the clear driver, having amassed over 40,000 orders since deliveries began in late March. This operational momentum is a key pillar of the company’s broader “Human × Car × Home” ecosystem, which now connects over one billion smart devices.
However, the path forward in autos is not without its bumps. Demand for the older YU7 model appears to be softening, with customer wait times collapsing from a peak of 56 weeks to just 7-14 weeks. To navigate this normalization and hit an ambitious target of 550,000 vehicle deliveries for 2026, Xiaomi has brought on former Tesla manager Kong Yanshuang to lead automotive sales. The company plans to launch four to six new models this year, employing a dual-track “All-Electric + Extended Range” strategy, with vehicles priced between 200,000 and 550,000 yuan (roughly $29,000 to $79,700).
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Simultaneously, Xiaomi has quietly become a global force in AI. Its MiMo-V2-Pro model, initially launched under the codename “Hunter Alpha” on March 11, 2026, has rocketed to the top of usage charts. It now processes a staggering 4.79 trillion tokens weekly, growing at a rate of 46% per week. According to data from OpenRouter, it holds the world’s largest market share for a language model, with usage triple that of OpenAI. Its secret weapon is price: at $1 per million input tokens, it undercuts rivals like Claude Opus by a factor of six or seven.
This AI leadership comes at a colossal cost. Xiaomi has committed to investing at least 60 billion yuan in AI over the next three years, with 2026 expenditures on AI and robotics alone exceeding 16 billion yuan. The monetization strategy is taking shape with the April 3 launch of “TokenPlan,” a developer subscription service priced from 39 to 659 yuan per month. Yet, these nascent API revenues are far from offsetting the research and development burden, especially as the core smartphone business faces pressure. In Q4 2025, Xiaomi’s operating profit (excluding autos) plunged 27%, with smartphone revenue down 14%.
The company celebrated its 16th anniversary amidst this complex backdrop. Investors are now left weighing the immediate, hard-won profitability of its electric vehicles against the vast potential—and equally vast expense—of its AI empire. The coming quarters will reveal whether Xiaomi can successfully monetize its billions of tokens and transform its AI usage leadership into a sustainable business model, all while executing a critical automotive expansion.
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