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XIACY · Forward model · Smart EV, AI and other new initiatives · Bear case

What has to happen in Smart EV, AI and other new initiatives

Model as of

This page changes Smart EV, AI and other new initiatives inside the complete XIACY model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

XIACY forward model
Horizon
Consolidated fair value $9.30 all other verticals held in this portfolio case
Final-quarter revenue $5.57B 32% of company revenue
Explicit segment contribution −$6.19B EBITDA less segment capex, before corporate items

Memory stays expensive, the premium mix reverts when it does, and the Chinese electric-vehicle price war reaches Xiaomi's segment before its volume does. Terminal revenue lands about 20% below base. What this case does NOT say is that Xiaomi breaks: internet services at a 76.8% gross margin is untouched by both problems, and it is the line that keeps group EBITDA positive throughout. The bear case here is a company that stops compounding, not one that stops earning.

Smart EV, AI and other new initiatives

Basis quarter$3.66B
Final quarter$5.57B
Implied CAGR+9%
Final revenue mix32%

The second engine, and the only vertical here with a shape rather than a rate. RMB24.9 billion in the June quarter, up 17.1%, at a 19.2% gross margin - a car business whose gross margin is now more than double the phone business's. Xiaomi delivered 104,199 vehicles, up 28.2%, into a Chinese passenger-vehicle market that shrank 22%. It still lost RMB2.6 billion from operations, because the quarter carried the run-up to the SkyNomad extended-range SUV line launching in September. The AI tail inside this segment - MiMo, priced by API token - turned over about RMB1.0 billion and is the first time it has been visible at all.

Last four quarters
2025 Q3 $4.07B Estimated
2025 Q4 $5.25B Reported
2026 Q1 $2.87B Reported
2026 Q2 $3.66B Reported
Smart EV (SU7, YU7, SkyNomad)AI and MiMo modelsOther new initiatives
Units 104199/qtr growing +6.0% per quarter 104,199 vehicles delivered in the June quarter, up 28.2% YoY, into a market that shrank 22%. Disclosed.
Price per unit $35118 drifting −0.5% per quarter $35,118 is segment revenue per vehicle delivered, not the car's own price - it carries the RMB1.0bn AI tail with it.
Smart EV, AI and other new initiatives

Latest: $5.57B (2031Q2E)

Period Value
2025Q2 $2.94B
2025Q3 $4.07B
2025Q4 $5.25B
2026Q1 $2.87B
2026Q2 $3.66B
2026Q3E $3.79B
2026Q4E $3.92B
2027Q1E $4.06B
2027Q2E $4.20B
2027Q3E $4.35B
2027Q4E $4.50B
2028Q1E $4.67B
2028Q2E $4.83B
2028Q3E $5.01B
2028Q4E $5.19B
2029Q1E $5.38B
2029Q2E $5.57B
2029Q3E $5.78B
2029Q4E $5.99B
2030Q1E $6.21B
2030Q2E $6.08B
2030Q3E $5.95B
2030Q4E $5.82B
2031Q1E $5.69B
2031Q2E $5.57B

Assumptions & reasoning

  • The unit price here is segment revenue divided by vehicles delivered, which is higher than the car's own average selling price because the segment also contains the AI and other-new-initiatives line. A reader moving the deliveries figure is moving the whole segment with it, and that is stated rather than hidden.
  • This is the one vertical where operating profit IS disclosed: the segment lost RMB2.6bn from operations in the June quarter, and earned RMB0.9bn across the whole of 2025. The -2.5% EBITDA margin is that loss with an assumed depreciation add-back, and the depreciation is ours.
  • Capex intensity of 9.2% comes from a disclosed figure: of RMB3,620.5m of group capital expenditure in the quarter, RMB2,382.6m was smart EV, AI and other new initiatives. It is the only vertical here whose capex is not an allocation.
  • The terminal 12% EBITDA margin is the largest single judgement in this model. It assumes Xiaomi reaches something like a mature volume carmaker's economics on a line that has been positive for exactly one year. Move it before anything else.
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