In one year, Xiaomi in 2025 showed that its ambitions in the e-mobility segment weren’t just a marketing experiment. The company posted record financial results, with total revenue growing to 457.3 billion RMB and up 25% year over year.
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Even more interesting is that adjusted net profit jumped by almost 44% to 39.2 billion RMB. This clearly suggests Xiaomi is no longer just a smartphone maker, but is gradually turning into a tech giant with a strong overlap into the automotive industry.
Xiaomi electric cars: A business that started making money
The biggest bombshell in this report is the Smart EV and AI division, which reached revenue of up to 106.1 billion RMB—an extreme year-over-year growth of 223.8%. A few years ago, Xiaomi hadn’t sold a single car; today, it’s one of the fastest-growing segments across the whole company.
The turning point, however, is that this division is already generating profit. Xiaomi achieved operating profit of roughly 900 million RMB, meaning it moved from the investment phase into real profitability. Vehicle deliveries reached 411,082 units, which is growth of more than 200% year over year. The average vehicle price is around €32,000 (in China), showing Xiaomi is targeting a highly competitive segment.
Xiaomi vs Tesla: Who’s more efficient?
When we compare these numbers with Tesla, the situation gets interesting. Tesla may generate significantly higher revenue (over 90 billion USD per year), but its margins are under heavy pressure. In recent quarters, its operating margins have hovered around just 7–10%, and net profit swings a lot due to price wars and lowering vehicle prices.
Xiaomi, on the other hand, shows a very fast path to efficiency. Gross margin in the EV segment reached 24.3%, which is an extremely strong figure for a new player. While Tesla is still dominant, Xiaomi proves it can build a profitable auto business in record time. That’s something most new EV startups haven’t managed to do.
SU7 and YU7: Demand that even surprised Xiaomi
The Xiaomi SU7 model became an instant hit. After its unveiling, it logged more than 15,000 orders in 34 minutes and over 30,000 within the first three days. Overall, the SU7 became the best-selling sedan in its price category in China.
An even bigger boost came at the end of the year, when the YU7 SUV model made up as much as 78% of monthly deliveries. December 2025 was record-breaking, with more than 50,000 vehicles delivered. Xiaomi has thus set a goal for 2026 of 550,000 cars sold, which—given the current growth—doesn’t seem at all unrealistic.
Smartphones are still strong, but no longer the main engine
Even though electric cars dominate the headlines, Xiaomi still holds a strong position in smartphones. Smartphone revenue reached 186.4 billion RMB, and the company has stayed in the global TOP 3 for the fifth year in a row. What’s interesting is that premium models above 3,000 RMB (400 €) already account for over 27% of sales, showing a shift toward the higher-end segment.
Xiaomi is also expanding into AI, where they introduced their own mobile assistant and are working on integrating large language models (LLMs) into its ecosystem. This is exactly the kind of synergistic approach that can connect smartphones, cars, and smart homes in the future.
IoT, services, and AI: An ecosystem as a competitive advantage
Xiaomi’s IoT segment is also breaking records with revenue of RMB 123.2 billion. The number of connected devices has exceeded 1.07 billion—an impressive figure and clear proof that Xiaomi’s ecosystem is working.
Internet services generate high margins of up to 76.5%, and the global user base has reached 754 million active users. These services—and AI—will be key for the future because they connect all products into one working whole.
You can also own a piece of Xiaomi: Become an investor
We’ve also bought shares of Xiaomi ourselves—back in 2021 and 2022, when the stock price dropped. Since then, the shares have delivered an unbelievable 378% gain in our portfolio. Personally, we buy Xiaomi shares via the broker eToro, a popular European platform for buying stocks and ETFs.
Invest in Xiaomi via eToro
Your capital is at risk. Additional fees may apply.
If you’d like to buy Xiaomi shares and own a stake in this popular Chinese company, you can open an account with eToro through our link (Your capital is at risk. Additional fees may apply.). eToro is especially suitable for beginners and offers very simple investing features—besides stocks, you can also buy less risky, diversified ETFs that track the US index S&P500 (ticker on eToro: SXR8.DE).
However, if you haven’t had any investing experience yet, we need to warn you that investing can be risky and you could end up with losses. At the same time, this article is not any investment recommendation.
Beginner tips for investing
For beginners, investing on the stock exchange is often seen as complicated, but you can prepare for it with a few steps:
- Education is the TOP priority: Learn the basics like stocks, ETFs, market capitalization, and diversification.
- Setting goals: Clarify whether you want to invest short-term (e.g., speculation) or long-term (to build wealth).
- Budget: Invest only the money you can afford to lose.
- Diversification: Never put everything into a single company or sector. Spreading your investments reduces risk.
- Choosing a broker: Choose an verified broker that offers easy tools for beginners.
- Long-term approach: Stocks can fluctuate, but when you invest long-term, history shows that markets tend to grow.
As the Xiaomi example shows, the stock market can be not only risky, but also rewarding for those who invest wisely and with patience. If you want help setting up your eToro account, or if you have questions about investing, feel free to contact us.
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