$XIAOMI-W(01810)$ 

Apple’s Project Titan, the stillborn Apple car could have put Apple in the spotlight for years to come. Instead, Apple’s decision to cancel the Apple car has only brought to the forefront, Apple’s secretive nature of working with partners and lack of innovation in recent years shows the lack of will to win at the long game.

Yet we witness, a company born of budget smartphones, low profit margins, rise to the occasion, combining the technological innovation of Apple and Tesla, puts US homegrown tech to shame. No wonder, some say, it can only be Made in China. The ascent of Xiaomi is even more telling given the challenges brought by the new US administration with it’s focus on tariffs. Tim Cook, the CEO of Apple is busy currying favour with Donald Trump trying to avoid this trade barrier due to his foreign based supply chain, while the other tech giant CEO, Elon Musk has his hands full trying to steer the Federal goverment with his D.O.G.E. initiatives.

In the fast-evolving world of technology and innovation, few companies have demonstrated the versatility and ambition of Xiaomi (1810.HK). With its latest unveilings—the Xiaomi 15 Ultra smartphone and the SU7 Ultra electric vehicle (EV)—on February 27, 2025, Xiaomi is signaling its intent to dominate both the consumer electronics and automotive industries. Under the visionary leadership of founder and CEO Lei Jun, Xiaomi is emerging as a hybrid powerhouse, blending Apple’s mastery of premium devices with Tesla’s disruptive approach to electric mobility. For investors, this stock represents a rare opportunity to back a company that could redefine global tech leadership. Here’s why Xiaomi belongs in every forward-thinking portfolio.

Xiaomi has long been a dominant player in the smartphone market, known for delivering high-quality devices at competitive prices. The Xiaomi 15 Ultra, launched yesterday, elevates this legacy to new heights. Priced at 6,499 yuan ($893), this flagship boasts a Snapdragon 8 Elite chip, a 6,000 mAh battery, and a 200MP periscope telephoto lens co-engineered with Leica—features that position it as a direct competitor to Apple’s iPhone and Samsung’s Galaxy series. Lei Jun has touted it as one of the most advanced devices in Xiaomi’s 15-year history, a bold step into the ultra-premium segment.

Simultaneously, the SU7 Ultra electric sedan underscores Xiaomi’s audacious pivot into the EV space. Priced at 529,900 yuan ($72,830)—a 35% reduction from its presale price of 814,900 yuan—the SU7 Ultra delivers 1,526 horsepower, a 0-100 km/h sprint in 1.98 seconds, and a sleek design that outpaces rivals like Porsche’s Taycan Turbo GT. With 6,900 pre-orders secured within 10 minutes of its launch and a goal of 10,000 units sold in 2025, Xiaomi is proving it can replicate Tesla’s knack for generating hype and demand.

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Xiaomi’s stock has been on a tear, reflecting investor confidence in its dual-track strategy. Since the SU7’s debut in March 2024, the company has delivered over 135,000 vehicles and secured nearly 250,000 orders in nine months—a feat Tesla took years to achieve in its early days. The SU7 Ultra’s launch, paired with ambitious plans to deliver 300,000 EVs in 2025, suggests Xiaomi is just getting started. Meanwhile, its smartphone business continues to thrive, with a 40% month-on-month sales increase in China and a second-place market share, trailing only Apple.

The chart tells a compelling story: Xiaomi’s share price has surged over 30% in 2025 alone, briefly hitting a record high yesterday ahead of the launch. This momentum mirrors Tesla’s early stock rallies post-Model 3 and Apple’s climb during the iPhone boom. Yet, Xiaomi trades at a forward P/E ratio significantly lower than its Western peers, offering a value proposition rare in tech giants.

At the helm is Lei Jun, a charismatic leader often compared to Steve Jobs and Elon Musk. His hands-on approach—evident in his factory visits to boost SU7 production and his social media promotions of the 15 Ultra’s camera prowess—has galvanized Xiaomi’s workforce and fanbase. Lei’s net worth has soared by $5.8 billion this year to $35.4 billion, per Bloomberg, a testament to his ability to translate vision into value.

Unlike many CEOs, Lei isn’t resting on laurels. He’s pushing Xiaomi into new frontiers—AI glasses, robotics, and a forthcoming YU7 electric SUV—all while maintaining rigorous cost control. The SU7 Ultra’s price cut from presale to launch exemplifies this discipline, broadening its appeal without sacrificing margins.

Critics might argue Xiaomi’s rapid EV expansion risks overextension, but the numbers defy skepticism. Weekly SU7 registrations recently surpassed Tesla’s Model 3 in China, and a six-month delivery backlog signals unrelenting demand. Unlike Apple, which has yet to enter the automotive space, Xiaomi is already a dual-category leader. Compared to Tesla, Xiaomi’s vertically integrated ecosystem—spanning phones, IoT devices, and now EVs—offers unmatched synergies Tesla can’t replicate without a smartphone arm.

Moreover, Xiaomi’s valuation remains grounded. Trading at HK$53.40 as of February 28, 2025, its market cap of approximately HK$1,324.5 billion pales beside Apple ($2.9 trillion) and Tesla ($1.2 trillion). This gap suggests significant upside as Xiaomi scales its EV ambitions and premium device portfolio.

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No investment is without risks. Xiaomi faces fierce competition from BYD and NIO in EVs and Huawei in smartphones, alongside supply chain constraints exacerbated by its EV ramp-up. Geopolitical tensions could also cap its global reach. Yet, these challenges are outweighed by Xiaomi’s execution track record—135,000 EVs delivered in under a year—and Lei Jun’s 90% confidence in hitting the SU7 Ultra’s 10,000-unit target. Yet, the SU7 Ultra has already achieved over 10,000 unit bookings within 2 hours of launch.

Xiaomi (1810.HK) is no longer just a smartphone maker; it’s a tech conglomerate with the potential to rival Apple’s ecosystem depth and Tesla’s EV dominance. The Xiaomi 15 Ultra and SU7 Ultra launches mark a inflection point, heralding a new era of growth. For investors, this is a chance to buy into a company that’s undervalued relative to its peers, led by a proven visionary, and poised to reshape two of the world’s most lucrative industries.

It’s no wonder that Forbes has called him the Steve Jobs of China.

Don’t wait for the stock to double—Xiaomi’s ascent is already underway. Add 1810.HK to your portfolio today.