International News 05/04

April 05, 2024 No. 55

Mass deliveries of Huawei and Chery's Luxeed S7 electric vehicles have commenced.

Huawei and Chery Auto's Luxeed S7 electric sedan has begun mass deliveries after facing delays caused by semiconductor shortages and production problems. Richard Yu, managing director and chairman of Huawei's smart car solutions, announced on social media platform Weibo that a large number of Luxeed S7 vehicles have been produced and are now being transported to customers. Huawei aims to resolve the delivery issues for its premium electric vehicle brand by April. Chery Auto previously filed a complaint against Huawei regarding production problems with computing units supplied by the tech company, which caused delays in vehicle deliveries. The Luxeed S7 sedan, the first model of Chery's Luxeed EV brand, has received approximately 20,000 orders since its launch. Huawei's revenue has experienced significant growth, driven by the recovery of the consumer segment and smart car components, which has helped the company rebound from US sanctions.


Xiaomi's stock valuation has surged following the launch of their electric car.

Following the launch of its sporty electric vehicle last week, Xiaomi's share price surged by 16%, resulting in a market capitalisation increase of $7.6 billion. By the end of trading, the share price had risen by 9.08%. Xiaomi's valuation now stands at $55.2 billion, surpassing that of US automakers General Motors and Ford. However, analysts have expressed concerns about this increase, as Xiaomi expects to incur losses due to the launch of its electric car, the Speed Ultra 7 (SU7). Some analysts predict significant losses, estimating a net loss of 4.1 billion yuan or an average of 68,000 yuan per car based on projected volume production of 60,000 units this year. The competition for electric vehicles in China's price segment is said to be fierce, making sales challenging for new entrants despite the country being the world's largest automotive market.

Focus on EV Manufacturers in Asia Pacific.

On Wednesday, stocks in Asia Pacific underwent a correction as investors focused on the performance of electric vehicle (EV) manufacturers. Tesla reported an 8.5% decline in vehicle deliveries for the first quarter of 2024, causing its shares to drop by 5%. Similarly, Chinese EV maker BYD experienced a 43% decrease in sales for the same period. Market sentiment was also affected by Wall Street's decline, which was attributed to higher inflation figures and strong economic data. Japan's Nikkei 225 and South Korea's Kospi experienced declines, while Hong Kong's Hang Seng Index futures indicated a slightly lower opening. In Australia, the S&P/ASX 200 continued its decline from the previous session. The Dow Jones Industrial Average also fell for a second day as bond yields increased.