Xiaomi receives record orders for a new car and puts Lei Jun among the richest entrepreneurs in China

Xiaomi shares updated their historical high, reaching around $7.8 per share after the successful launch of pre-orders for the new YU7 car. Within the first hour, the company recorded almost 300,000 orders, which was a key factor in the growth of the company's capitalization and increasing the fortune of its founder, Lei Jun.

The new YU7 sedan starts with a base price of $35,000 and is a continuation of Xiaomi's diversification strategy in the electric vehicle segment. High demand for the car is supported by market expectations regarding design, technology, and price-performance ratio. Earlier in the Xiaomi car line debuted the SU7, as well as its modification SU7 Ultra.

As a result of the rising share price, Lei Jun's net worth exceeded $68 billion, making him once again the wealthiest businessman in China. Earlier in February, he already led the rating of billionaires in the country after the growth of quotations to $6.6, but the subsequent decline — including after the fatal incident with the Xiaomi car-temporarily corrected his position.

The company's automotive division continues to face challenges in scaling production. At the moment, Xiaomi has only one production facility at its disposal — a factory in the Yizhuang district of Beijing, where the SU7 is produced. In March, the company raised its full-year supply forecast from 300,000 to 350,000 units.

As part of its capacity expansion strategy, the company is building a second plant. Both facilities are designed to produce 150,000 vehicles annually, potentially reaching a combined production capacity of 300,000 vehicles per year. The new businesses will focus on the SU7, SU7 Ultra and YU7 models.

Due to the high demand, the waiting time for ordered cars reaches 33 weeks. These indicators indicate both a high level of market interest and current constraints in logistics and production scalability.