
【Is Xiaomi SU7 losing 6,800 yuan per car sold? When will it break even?】Citigroup analysts claim that for every Xiaomi SU7 sold, the company loses 6,800 yuan, estimating that Xiaomi's automotive business could incur losses of up to 4.1 billion yuan by 2024. Although Xiaomi executives have denied this claim, I believe the pricing strategy is intended to demonstrate sincerity to consumers, as Lei Jun stated during the launch event—new entrants often face initial losses.
The Xiaomi SU7 has garnered widespread attention, laying the foundation for future profitability. While a single model may struggle to achieve breakeven, the subsequent launch of Xiaomi's SUV could sustain the momentum of the SU7, thereby unlocking production capacity, expanding market share, and generating economies of scale. As a company with a strong user base and a robust internet ecosystem, Xiaomi holds unique advantages in the automotive sector. Through its "hardware + software + services" profit model, Xiaomi Auto has the potential to achieve profitability in the future. For example, by attracting users with automotive hardware sales, it can then increase revenue through software upgrades and smart services.
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