Business Insider·2025-11-18 16:13Core Insights - Xiaomi's electric vehicle (EV) business has achieved quarterly profitability for the first time, reporting a gross profit of $98.5 million for the quarter ending in September [1][2] - The division's revenues reached a record high of $4 billion, with $3.98 billion coming from EV sales and $98.5 million from related businesses [2] - Xiaomi's SU7 sedan was a significant success, selling over 130,000 units last year, and its new model, the YU7, received 240,000 preorders within 24 hours of its launch [3] Company Performance - Xiaomi delivered over 100,000 EVs in the third quarter, a substantial increase from around 40,000 units during the same period last year [3] - The company has successfully navigated the challenging landscape of EV profitability, achieving this milestone in under two years, unlike many competitors [4] - Tesla took approximately ten years to report its first profitable quarter, while BYD has maintained consistent profitability by selling both hybrids and battery-electric vehicles [5][6] Industry Context - The EV market is characterized by fierce competition and price wars, making profitability difficult for many companies [7] - Notable competitors like Ford and GM are still incurring significant losses in their EV segments, while startups such as Lucid and Rivian reported losses of around $1 billion in the third quarter [6][7] - Other Chinese EV startups, like Nio and Xpeng, are also struggling, with Nio reporting a net loss of nearly $700 million in the second quarter of 2025 [7][8]