---
title: "MARS Talk｜Give Xiaomi some time"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/32758730.md"
description: "After the release of YU7 on June 26, the stock price of Xiaomi Group continued to decline, falling from a high of 61.5 yuan to 51.25 yuan at Friday's close, causing some anxiety among shareholders. Simply put, even with over 300,000 orders on the night of YU7's release, production capacity issues are a dark cloud hanging over Xiaomi and Lei Jun, as well as the capital market. If sales cannot be converted into deliveries, the short-term financial data will be affected. Many friends have been asking me about the progress of the second-phase factory construction and production capacity..."
datetime: "2025-08-08T12:31:45.000Z"
locales:
  - [en](https://longbridge.com/en/topics/32758730.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/32758730.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/32758730.md)
author: "[MARS 商业思考](https://longbridge.com/en/profiles/16153766.md)"
---

# MARS Talk｜Give Xiaomi some time

After the release of YU7 on June 26, the stock price of Xiaomi Group has been continuously declining, dropping from a high of 61.5 yuan to Friday's closing price of 51.25 yuan, causing some anxiety among shareholders.

Simply put, even though YU7 received over 300,000 orders on the night of its release, production capacity issues continue to loom over Xiaomi and Lei Jun like a dark cloud. The same applies to the capital market—if sales cannot be converted into deliveries, the short-term financial data will be affected.

Many friends have been asking me about the progress of the second-phase factory construction and production capacity. However, in reality, this is like checking answers after submitting an exam paper—even if you know the truth, it won’t change the actual outcome. It’s more about curiosity at play.

As a graduate in construction engineering, I know one thing for sure: rushing progress for the sake of speed will only create endless problems later on.

What Xiaomi needs now is time.

Regarding delivery issues, Lei Jun is more anxious than anyone else. I believe he and his team are doing everything they can to speed up deliveries. As retail investors in Xiaomi, we can wait and observe during this vacuum period. But if we choose to continue holding, perhaps all we can do is wait and leave professional matters to the professionals.

During the market preparation before the YU7 launch, the project team could never have anticipated that orders would exceed 300,000 on the first night. They now have to plan production based on three times the order volume of SU7. This "happy problem" is something Xiaomi is the first among new energy vehicle makers to experience.

During the long delivery period, competition from rival products is inevitable. After watching the XPeng P7 NEXT technical launch, aside from the awkward guest interactions, the vehicle design and product positioning were clearly targeting SU7. Even if you place an order for SU7 today, you’ll still face a production schedule of around 40 weeks. These are all factors that capital considers when assessing short-term risks.

For the upcoming Q2 earnings report, the main growth drivers will likely be tablets, home appliances, and the SU7 Ultra, roughly matching Q1 growth rates. The smartphone business may see a slight seasonal decline, but the overall fundamentals remain solid.

As Xiaomi gradually overcomes the difficult production ramp-up, future models will likely follow the same hit-making logic. However, the current phase is indeed challenging. Overly high expectations for YU7 have also led to speculative capital withdrawing due to the current production shortages.

Instead of worrying, perhaps we should give Xiaomi some time to focus on solving these problems and deliver orders to every customer as soon as possible.

Happy weekend. August 8, Mars at Qinghe.

$XIAOMI-W(01810.HK)

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## Comments (3)

- **深蓝子 · 2025-08-10T03:37:51.000Z**: k
- ***烟火声* · 2025-08-08T23:38:34.000Z**: How long is the factory expected to take to complete?