Well, I didn’t expect to be typing that headline but it’s happening. At the end of March 2024, Xiaomi based in Beijing launched their very first electric vehicle (EV) to rave reviews. Xiaomi is barely 14 years old and more known for its mobile phones and gadgets. However in 2021, it announced a USD 10 billion dollar project for EVs. Even more surprising is that Apple was secretly working on a car as well but just weeks before the Xiaomi is officially announced it was killing off Project Titan – their secret EV program.
On March 28, 2024 in Beijing the Xiaomi SU7 line of 4-door EV sedans were launched. The SU7, SU7 Pro and SU7 Max. The SU is short for speed ultra. The amount of innovation that was presented during the launch from the manufacturing, the batteries, the motors, etc… was mind bending. And don’t even get me started on the pricing of their new EVs. I can see why Elon Musk now feels the Chinese EV companies are a real threat to Tesla and other manufacturers.
A couple weeks after the SU7 was launched, the reviews of the Porsche Taycan Turbo GT were released. I’m a die-hard Porsche fan but the new Taycan seems stupid from an overall product portfolio lineup. The hard core Taycan Turbo GT with the Weissach Package and other upgrades will cost north of a quarter millions dollars AND they have removed the back seat to save weight. WHAT? A 4-door sedan with only 2 seats, I want to meet the product manager that came up with that idea and the committee that voted on it.
The above chart is a great comparison of a new age EV company, an established EV manufacturer, and a legacy automaker. I really don’t see how Porsche can compete in the EV space with their current go-to-market strategy. Xiaomi is brand new but at that price point many people will take a dip and try it out and that is what probably worries Elon Musk the most.
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