Xiaomi Stock Drops Amid Disappointing June EV Deliveries and Profit-Taking Pressure
The Xiaomi stock just took a hit, and there’s more to the story than meets the eye.
In June 2025, Xiaomi reported over 25,000 EV deliveries. That sounds strong on the surface. But compared to May’s numbers, it’s a slight drop. Investors noticed. The stock slipped, and some investors chose to cash out while they were still ahead.
Xiaomi entered the electric vehicle (EV) race with high hopes. The launch of its SU7 sedan and recent buzz around the YU7 model had pumped up share prices. Expectations were sky-high. Many thought the company would crush delivery records month after month. But that didn’t quite happen this time.
We’re now seeing the first signs of market pressure. Not just because of a delivery dip, but also due to long wait times and customer complaints. Many buyers now face a delivery wait of up to a year. That’s led to frustration and a shift in how investors view Xiaomi’s EV ambitions.
Let’s break down what’s behind the stock drop, the real story behind the delivery numbers, and what this means for Xiaomi going forward.
EV Delivery Numbers: Good, but Slowing
June marked Xiaomi’s ninth straight month delivering above 20,000 vehicles. We see that as progress. But the drop from 28,000 to 25,000 raised eyebrows. Many folks expected numbers to keep climbing after the YU7 pre-order frenzy. That slight pullback triggered concern.
YU7 Launch: Record Interest, Real Delays
Xiaomi’s YU7 SUV generated a wave of enthusiasm. It claimed about 240,000 orders in the first 18 hours. Investors cheered, and the stock jumped 8% briefly, hitting record highs.
But the excitement was tempered by reality. Buyers now face a delivery wait of 38 to 60 weeks.
That led to over 400 complaints on customer-complaint platforms. Some buyers accuse Xiaomi of hiding the long wait times before orders closed. That level of frustration shows cracks in consumer trust.
Profit-Taking After a Surge
The stock surge after YU7’s launch drew profit-seekers. When deliveries missed the ideal mark, those investors started selling. The result? That dip to HK$58. It was a mix of profit-taking and concern.
Many analysts note that the stock had risen over 70% this year, easily making it the top-performing large-cap stock in Asia-Pacific. A pause was inevitable.
Long-Term Vision: Bigger Factory, Global Ambitions
Xiaomi isn’t hitting pause. They recently secured a large land parcel in Beijing to boost EV production. They’ve raised their 2025 target to deliver 350,000 EVs. We see that as a strong sign they’re serious.
CEO Lei Jun also said the EV division should turn profitable in the second half of 2025.
Plus, Xiaomi plans to explore bringing its cars overseas, but not until at least 2027.
Challenges: Safety, Compliance, and Consumer Trust
Xiaomi’s fast rise met bumps, too. Earlier, the SU7 sedan was involved in a fatal crash. That led to scrutiny of its “smart” driving features. SU7 order volumes also dropped sharply by 55% in April, then continued sliding into May.
Xiaomi also landed itself in trouble with a claim of misleading advertising for a “carbon fiber” hood. This cost them nearly 400 refund requests.
Delivery delays have been another consistent issue. Some analysts now suspect Xiaomi is intentionally under‑forecasting availability to keep hype high.
That mixed record has strained customer trust. And investor confidence often mirrors consumer confidence.
Investor Implications: Watch Delivery Trends and Profitability
So, where does that leave us? The stock dip seems tied more to sentiment than fundamentals. Xiaomi’s underlying business remains in expansion. But market sentiment has swung.
We’ll need to watch the upcoming months. Will June be an anomaly or the start of a trend? Can Xiaomi restore trust by fixing delivery times and better communicating waits? Focus will also shift to Q3 earnings due in August. They’ll give a clearer view of whether their EV arm can deliver profit.
Our view is that execution will matter more than hype from now on. If Xiaomi hits its 350k EV target and maintains transparent delivery schedules, investor faith could return.
Conclusion: Hype vs. Execution
Xiaomi’s stock drop shows how fast markets can shift on small delivery changes and burst bubbles. We saw hot demand, profit-taking, delayed cars, and consumer pushback converge.
In our view, this is a crucial test. Xiaomi’s EV journey is still young. Its next few quarters will determine if it becomes a sustainable auto player or remains a flashy disruptor.
Frequently Asked Questions (FAQs)
Xiaomi stock dropped because June EV deliveries were lower than expected. Also, many investors sold shares to take profit after a big price jump.
Xiaomi stock might recover if EV sales increase and customers stay happy. It depends on better deliveries, fewer complaints, and strong company performance.
Xiaomi stock may be worth buying for some if they believe in its EV growth. But risks like slow deliveries and customer issues should be considered first.
The future of Xiaomi stock depends on EV success, global plans, and profit growth. It may rise if the company delivers cars on time and maintains trust.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.