By Tracy Qu

Xiaomi's shares surged after the tech company unveiled its maiden electric vehicle, a competitively-priced sedan vying against Tesla and others for market share in China's crowded EV space.

The stock was 12% higher in Hong Kong on Tuesday, the first trading day after the EV was unveiled late last week. The early gains put the shares on track for their biggest one-day gain in two years. Over the past 12 months, the shares have gained 39%.

Xiaomi, a Beijing-based company better known for its smartphones, last week launched its SU7 four-door sedan with a lower-than-expected starting price of around $30,000.

Deliveries are slated to start this week and Xiaomi received nearly 90,000 refundable orders in the 24 hours after the EV's launch. A check by Dow Jones Newswires on Xiaomi Car's WeChat mini program suggests orders may take 20 to 23 weeks to arrive.

Xiaomi is expected to ship 5,000 to 6,000 of the vehicles in April, with full-year sales at 55,000 to 70,000 units, according to Citi auto analysts led by Jeff Chung in a research note. By comparison, Chinese startups Li Auto and Nio delivered about 376,000 and 160,000 vehicles, respectively, last year.

Citi analysts said in the same report that believe the Xpeng would be "the biggest victim" from the entrance of Xiaomi's SU7 into the market, given that their average selling prices overlap. They kept a sell rating on XPeng and a buy rating on Xiaomi. Xpeng's shares recently down 5.8%.

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(END) Dow Jones Newswires

04-02-24 0017ET