By Investing.com — Chinese consumer electronics company Xiaomi (OTC:XIACF) has announced it will join the electric vehicle (EV) charging networks of rivals NIO, XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI). The partnership will give Xiaomi’s auto business customers access to over 29,000 charging stations across China.
The announcement was made in a Weibo (NASDAQ:WB) post on Wednesday, where Xiaomi revealed that its cars could now be utilized at more than 14,000 charging stations developed by NIO, 9,000 by XPeng, and 6,000 by Li Auto. The company did not provide additional details about the agreements.
CCB International analyst Qu Ke has described these partnerships as a strategic move by Xiaomi to utilize available resources to the fullest.
Xiaomi, a company primarily recognized for its smartphones and home appliances, is a relatively new entrant to the global largest EV market. Despite the competition, Xiaomi’s EV business, which launched its first car in March, has reported strong sales performance.
The company generated 9.7 billion yuan ($1.33 billion) in revenue in the third quarter alone, an increase from the second quarter. The gross profit margin of the business also improved, rising to 17.1% from 15.4%.
In November, Xiaomi achieved its 2024 delivery goal of 100,000 units sooner than expected, leading the company to increase its annual target to 130,000 units.
Xiaomi’s shares, which closed at 32.75 Hong Kong dollars before the Christmas holiday break, have more than doubled this year. The surge is attributed to strong earnings and a better-than-expected performance of its EV business.
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