Xiaomi’s Sky Nomad Reveal Lifts Shares 9%, but Margin Squeeze and Delivery Gaps Keep the Stock in the Red

A single-day surge on Wednesday added nearly a tenth to Xiaomi’s market value, as investors cheered the official unveiling of the company’s new electric-vehicle sub-brand. The stock climbed 9.28% to €2.82, clawing back some ground from the 52-week low of €2.34 recorded just days earlier on 26 June. Even after that rally, however, the shares remain down roughly 37% year-to-date — a modest improvement from Tuesday’s close that had left the paper nursing a 42.49% loss since the start of 2026.

The fresh catalyst is “Sky Nomad” (Xuntian in Chinese), an EREV (extended-range electric vehicle) line that marks Xiaomi’s most aggressive push yet into the automotive space. The first model, a full-size SUV internally designated the Kunlun N3 and also referred to in some reports as the N90, will measure over 5.3 metres in length and target large-family buyers. It pairs a large battery — capable of roughly 400 kilometres of pure-electric driving — with a small petrol generator as a range extender, yielding a combined range of more than 1,500 kilometres. Xiaomi expects to price the vehicle between 200,000 and 450,000 yuan and launch it in the second half of 2026.

Production is already being ramped up at Xiaomi’s own plant in Beijing, which received regulatory approval last month. Battery cells come from two suppliers: Sunwoda provides 60% and CALB the remaining 40%. The company is targeting total EV deliveries of 550,000 units for the full year, a figure that looks demanding given that June marked only the third consecutive month of deliveries above 30,000 vehicles. First-half volumes still fall well short of the annual pace, and the core SU7 model saw a 14.24% year-on-year sales drop in May.

Alongside the new brand, Xiaomi introduced “Titan Alloy 2.0,” a green aluminium alloy made entirely from recycled material. Already used in the rear-floor assemblies of the SU7 and YU7, the alloy cuts carbon-dioxide emissions by roughly 93% compared with primary aluminium, according to the company. The IVL Swedish Environmental Research Institute has independently verified the innovation, and it is registered in the international EPD system. Xiaomi estimates each vehicle will save nearly 800 kilograms of CO2, which at an annual production run of 550,000 vehicles would mean a reduction of almost 450,000 tonnes.

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On the software side, Xiaomi is preparing HyperOS 4 for a China release in July or August 2026, promising better stability and deeper artificial-intelligence integration. The existing “Xiao Ai” voice assistant will be refashioned into an infrastructure layer for the broader “Human × Car × Home” ecosystem.

Yet the operational picture is far from clean. While the EV division shows momentum, Xiaomi’s core smartphone business continues to suffer from rising memory-chip costs, which accounted for nearly 60% of total material costs in the first quarter. That margin squeeze forces the company either to raise retail prices or to compromise on hardware. The stock’s 30-day decline of 14.22% and a 12-month plunge of 59.60% underscore the market’s persistent scepticism. The relative-strength index of 36.6 suggests the shares are nearing oversold territory, and a weekly gain of 4.41% offers a faint sign of stabilisation, but the paper still trades 34.39% below its 200-day moving average of €3.94.

Whether the Sky Nomad brand and the sustainability push can change that narrative depends entirely on the Kunlun N3’s reception — and on Xiaomi’s ability to scale production without further eroding margins. For now, the market is giving the company a tentative benefit of the doubt, but the deep hole left by six months of losses will not be filled by a single day’s rally.