During Xiaomi’s car launch conference, Lei Jun walked across Haikou to arrive at 15to 20Become top 5 in the world within this yearcar factory
Key points:
Liu Zhiheng
If you have read the book “Going Forward”, you will knowXiaomi Group(1810.HK)’s passionate ten years, how did Lei Jun, a mobile phone layman, bring Xiaomi to the peak of sales? Will he replicate his successful model in new energy vehicles today?
At Xiaomi’s car launch event at the end of last year, Lei Jun showed off Xiaomi’s first electric car, the SU7. Its appearance is eye-catching. Although some people say it looks like a hybrid of Porsche’s Taycan and Tesla, its looks are indeed amazing. , all the equipment and technology are also high-end, no wonder Lei Jun repeatedly emphasized: “Don’t call 99,000, it’s impossible!” But the market always focuses on the price, Lei Jun had to add: “There is no need to talk about 149,000, we still have to Respect technology.”
The implication is that it is difficult for Xiaomi Motors to follow the ultra-flat route. As for whether Lei Jun has set price expectations for the market and then grabs the market at a low price, everything will be revealed after the official launch of SU7 this year.
To become one of the top five car manufacturers in the world
Lei Jun’s bold words at the press conference showed great determination. The automobile industry has developed for more than a hundred years, and there is no shortcut to racing on the track. He made a promise: “We will invest ten times the effort, start from the underlying core technology, and conscientiously build a good car. After 15 years, We will work hard from 20 to 20 to become one of the top five automobile manufacturers in the world and strive for the overall rise of China’s automobile industry.”
Lei Jun’s speech was exciting, but the reality was different. The investment market, in particular, did not seem to buy it. On the day of the press conference, the stock price did not rise but fell. It once fell by nearly 2%. The decline did not stop the next day, closing down by more than 4%. , reported at HK$15.28, does it mean that everyone is not optimistic about its development prospects? We don’t have a crystal ball, and it is still unknown whether Xiaomi Motors can outperform in the end, but we can try to analyze it from the perspective of the overall environment and the company level.
Let’s talk about the overall market first. There are many strong players in the field of new energy vehicles. There are many foreign companies.Tesla(TSLA.US), available in ChinaBYD(1211.HK; 002594.SZ), plus “Wei Xiaoli” andZero run(9863.HK) and other new car-making forces, the competition has become very fierce. The market is questioning how Xiaomi, a latecomer, can break out. If there is a slight mistake, it will be on the road to failure at any time. Moreover, after the rapid growth of new energy vehicles in recent years, the market may slow down.
The tram market is booming
From the global requirements for reducing carbon emissions in recent years, as well as the layout of new energy vehicles in various places in recent years, it can be expected that in the future world, new energy vehicles will gradually replace gasoline-fueled vehicles. The question is only when. Therefore, as for market saturation, for the time being, It doesn’t seem like there’s much to worry about.
According to data from the China Association of Automobile Manufacturers, from 2020 to 2022, China’s new energy vehicle sales were 1.367 million, 3.521 million and 6.887 million vehicles, representing year-on-year increases of 10.9%, 157.6% and 95.6%. As of November this year, the penetration rate of new energy vehicles in the mainland reached 36%. However, this is still far from saturation. Even if it is already filled with multiple car manufacturers and new competitors are added, the market will still have enough space for them to compete and compete. Don’t forget that there is also a large overseas market, which is enough to accommodate more mainland car companies to expand their territory.
We see that the new energy vehicle market still has great potential in the future, but in the process of development, it is inevitable to compete with peers and eliminate the weak while retaining the strong. Back then, WM Motor came with strength and eventually lost to Maicheng. It can be seen that the ability of the company is the key , how to deal with it is an important part.
For Xiaomi’s Lei Jun, fromKingsoft(3888.HK)’s success. Ten years ago, a layman started from scratch in the killing field of the mobile phone industry, and finally overcame all difficulties and became a leading mobile phone brand, occupying an important position in the Chinese and overseas markets. This shows that Lei Jun and his team have Quite capable.
Even though there are criticisms that Xiaomi has not been successful in making high-end mobile phones, Xiaomi is still a global smartphone brand, ranking among the top three in terms of shipment volume. Just like startups or private equity investments, a lot of emphasis is placed on the leadership team, and the founder of Xiaomi has a brilliant resume to give people a vote of confidence.
Lei Jun didn’t suddenly want to build a car when he woke up. He had already made plans ten years ago. Lei Jun had already laid out his plans and invested in the field of passenger cars.Xiaopeng(9868.HK) andNIO(9866.HK), and has also invested in No.9 Company, Craftsman School and Stone Technology.During this period, Xiaomi invested in lidar companies.Hesai Technology(HSAI.HK) andSagitar Juchuang(2498.HK) and other key brands, through investment, participation and observation, we have gained years of experience and knowledge, and established considerable personal relationships.
Lei Jun’s last blow in life
It was Lei Jun who had already planned, so within 1,003 days after the announcement of the car, Xiaomi was able to resolve matters such as talent recruitment, car manufacturing qualifications, and self-built factories in a short period of time.
Financially, when Lei Jun expands electric vehicles, he has the backing of Xiaomi, a listed company, which does have certain advantages. Let’s take a look at Xiaomi’s third quarterFinancial Statementsin the third quarter alone, operating cash flow was 13.3 billion yuan, cash on hand was 31.65 billion yuan, short-term bank deposits were 51.4 billion yuan, while long-term and short-term borrowings were only 44.8 billion yuan.
Although the investment in building a car is often calculated in tens of billions, with Xiaomi’s current financial resources, coupled with Lei Jun’s personal connections, and its brilliant entrepreneurial achievements in the past, it is believed that finding financing in the market will not be a problem. No wonder Lei Jun dared to say the words “not short of money” at the press conference.
Oda Nobunaga, a famous figure in Japan’s Warring States Period, had the ambition to unify the world and spread military force across the world. Today, Lei Jun publicly called out and threatened to become one of the top five automakers within 15 years at the earliest. He said boldly: “This is the last major entrepreneurial project in my life. I am willing to bet all my achievements and reputation in life and go all out to build Xiaomi cars.”
In fact, with Lei Jun’s impressive achievements in the software and mobile phone industries, coupled with his ability and indomitable spirit, he has a great chance to occupy an important position in the new energy vehicle market.
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2024-01-08 00:45:49
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