At Xiaomi’s Annual Speech 2024 event, there were notable announcements from the company, including interesting developments in their automotive and vehicle ventures. Xiaomi founder Lei Jun discussed the company’s entry into the automotive sector and how the initial $10 billion valuation given to the company served as a motivator.
Xiaomi’s Bold Move on $10 Billion Car Venture
During the annual speech, Lei Jun recounted the story of Xiaomi’s foray into the automotive industry and how they challenged market predictions. When Xiaomi announced its entry into car manufacturing on March 30, 2021, market analysts valued the company’s automotive venture at just $10 billion. Jun viewed this as a dismissive starting point and set much higher goals.
Lei Jun took a significant risk by personally funding all the necessary resources for the Xiaomi SU7 project, demonstrating his belief in the project. He stated that covering all the payments and assuming the risks increased the team’s motivation and progressively strengthened their position in the automotive industry.
Ignoring the market’s monthly sales forecast of 3,000 units, Lei Jun set an ambitious target of 76,000 units. This target not only reflected the sales figures but also highlighted Xiaomi’s billion-dollar potential in the automotive sector. The company, aiming to produce a car that even engineers would want to drive, is now considered one of the most significant players in the market.
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