Xiaomi’s Shares Drop After Handset Maker Denies Report of Electric Car Project
Zhang Yushuo | Lv Qian
DATE:  Feb 22 2021
/ SOURCE:  Yicai
Xiaomi’s Shares Drop After Handset Maker Denies Report of Electric Car Project Xiaomi’s Shares Drop After Handset Maker Denies Report of Electric Car Project

(Yicai Global) Feb. 22 -- Xiaomi’s shares retreated after the Chinese smartphone and gadgets maker dismissed a media report that said the firm was planning to develop its own electric vehicles.

Xiaomi [HKG: 1810] ended 5.4 percent down in Hong Kong today at HKD29 (USD3.74), while the benchmark Hang Seng Index lost 1.1 percent.

The tech giant’s stock price had surged more than 10 percent on Feb. 19 after the Late Post reported that Xiaomi is determined to make electric cars even though the exact route has yet to be determined. It would not be the first big Chinese tech firm to move into the new energy vehicle sector. Early last month, internet search giant Baidu and Geely Holding Group revealed plans for a joint venture to make smart EVs.

Xiaomi has been keeping an eye on the NEV sector and has been doing research in the field, but it has not launched any such business, the Beijing-based company said in a statement yesterday. 

The firm has more than 834 patents related to automobiles, focusing on wireless communication networks, data transmission, traffic control systems, and navigation, but not car parts, according to intellectual property information provider PatSnap.

Tesla's patents are worth over USD200 million, whereas Xiaomi's vehicle-related patents tally exceeds USD100 million. But some popular NEV makers get by with less. China's Nio has USD18.6 million in patents, according to PatSnap.

Xiaomi has cooperated with car companies before. It has set up a joint laboratory with BYD to build a technology development platform. Meanwhile, Xiaomi handsets feature smart control functions for models made by BYD, Xpeng Motors, and Nio.

Editor: Emmi Laine

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Keywords:   Xiaomi,EV