Sunday, April 11

Xiaomi wants a Tesla-style success story

Lei Jun has formalized Xiaomi’s entry into the electric car business. A subsidiary directly headed by the interested party will receive 10 billion dollars of investment over 10 years.

Source: Jannes Glas via Unsplash

Gamesdone: Jannes Glas via Unsplash

A rumor that becomes reality. After multiple noise in the hallway, reports to be taken with a grain of salt and more concrete pieces of information from Reuters, Xiaomi formalized its entry into the electric car sector through its CEO Lei Jun, at a new conference broadcast on YouTube where the Mi Mix Fold foldable smartphone was inducted.

The decision was definitively validated by the board of directors. For the occasion, a subsidiary 100% dedicated to the development of this new activity will be created. Wholly owned by the group, it will receive no less than $ 10 billion in investment over the next ten years, Lei Jun announced. The latter will lead the operations in person.

Xiaomi wants to become an expert

The Chinese company met with hundreds of experts before making this decision. ” I know the risks of this sector, the investment is going to be very big, billions and billions of yuan “, Warns the boss of the group, whose entourage would have encouraged him to embark on the adventure.

Source: CHUTTERSNAP via Unsplash

Gamesdone: CHUTTERSNAP via Unsplash

« Xiaomi is already an expert in software and hardware. Why not in electric cars? Lei Jun wondered. A question asked with disconcerting lightness, which nevertheless harbors colossal technical, human and financial investments. Today, nothing says that Xiaomi will manage to walk the talk and market a model.

Many risks

« An electric vehicle is like a smartphone with four wheels Even dared to compare Lei Jun, who will face far more complex challenges than a mobile device. The businessman is still aware of the risks involved, he says.

The conference was also an opportunity to see a motorhome full of Xiaomi products. This visual is not to be taken at face value, and does not represent the future electric vehicle of the brand. However, it reflects a certain ambition: to combine different worlds, that of the automobile and the world of tech ‘as a whole.

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