On March 28, Xiaomi’s CEO Lei Jun shared his thoughts on the launch of the new Xiaomi SU7 electric vehicle (EV), revealing the immense pressure he felt during the event. During a media interview following the launch, Lei expressed a mix of excitement and tension, emphasizing the significant financial investment and three years of hard work that led to the event.
Lei Jun admitted that the pressure to deliver a successful product was immense. It’s the most exhausting launch I’ve ever experienced, both physically and mentally, he said. He also noted that, aside from Tesla, he was unaware of any other company that made a profit from selling EVs. The high expectations placed on Xiaomi, particularly for affordable pricing, only added to the pressure.
Xiaomi has been striving to find the perfect balance between meeting consumer expectations and ensuring profitability. Lei Jun explained that the company is aiming for a point where consumers feel our sincerity while we can still bear the losses. He further highlighted the challenges of producing EVs, noting that high costs make it difficult for companies to turn a profit. Even Tesla, with its large scale and high operational efficiency, only achieves a profit margin of 9.2%. The Model 3, priced at 24.59万元, would require a sales price of 22.3万元 to break even based on the company’s reported operating profit margin.
Despite the challenges, Lei Jun expressed his determination to succeed. I came to this launch with a winning mindset, he said. I believe that while building an EV company is incredibly difficult, success will be incredibly rewarding. He also emphasized the importance of perseverance, noting that many people are still committed to the EV industry.
On the day of the launch, the prices for the Xiaomi SU7 were officially announced. The Xiaomi SU7 Standard Edition is priced at 21.59万元, the Xiaomi SU7 Pro at 24.59万元, and the Xiaomi SU7 Max at 29.99万元.
The launch of the Xiaomi SU7 marks a significant milestone for the company as it continues to diversify its product offerings and venture into the EV market. Lei Jun’s comments highlight the challenges faced by companies in this rapidly evolving industry, as well as the importance of balancing consumer expectations with profitability. Only time will tell if Xiaomi’s strategy for the SU7 will pay off, but one thing is certain: the electric vehicle market is becoming increasingly competitive, and companies like Xiaomi are facing the pressure to innovate and succeed.
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