Xiaomi's EV division profitable after 19 months

Consumer electronics giant beats timeline of Tesla with approach of ruthless efficiency.

- BY LINDA LEW

NA BIAN Bloomberg XIAOMI launched its second model in June - the YU7 SUV, shown in Beijing-which garnered more than 289,000 orders within hours.

Xiaomi Corp. parlayed its popularity with an existing customer base to rake in orders for its push into electric cars, reaching profitability in less than half the time it took Tesla Inc.

The consumer electronics giant on Tuesday reported a 700-million-yuan ($98-million) profit for its EV and artificial intelligence division in the quarter ended Sept. 30 — roughly 19 months after launching its SU7 electric sedan.

Comparable EV makers were slower to reach the milestone. Tesla first achieved quarterly profitability in 2013, just over five years after it started delivering the original Roadster in 2008. Li Auto Inc., another Chinese automaker, took about two years to break even on a quarterly basis, though it mainly sells extended-range EVs.

Xpeng Inc. and Nio Inc. are still racking up losses, but have targeted to break even in 2025, about eight years after their first cars were unveiled.