Xiaomi CEO Discusses EV Entry After US Sanctions

Xiaomi CEO Lei Jun revealed that the company's entry into the electric vehicle (EV) market was prompted by U.S. sanctions imposed in early 2021, which placed Xiaomi on a blacklist. This unexpected move led to an emergency board meeting and a decision to develop the SU7, Xiaomi's first EV, which was unveiled in March 2024. Despite initially facing significant challenges, including competition from established brands like Tesla and luxury automakers, Xiaomi has successfully delivered over 30,000 SU7 vehicles and aims for 100,000 deliveries by November. Lei described the sanctions as a 'bolt from the blue' that prompted the company to diversify its product offerings. In May 2021, Xiaomi successfully challenged the sanctions in court, which lifted U.S. investment restrictions. The company also declined a $10 billion venture capital offer, choosing to self-fund its EV operations instead.