Core Viewpoint - The article discusses the recent challenges faced by Xiaomi and its founder Lei Jun, particularly regarding the company's automotive division and the impact on its brand reputation due to a series of missteps [6][22]. Group 1: Xiaomi's Recent Challenges - Lei Jun's video content on Douyin has been paused for over a month, marking a significant change for a successful founder IP [1]. - In 2024, Lei Jun published 255 videos and held nearly 20 live broadcasts, significantly boosting Xiaomi's visibility and reputation [6]. - The automotive division faced a severe traffic accident in April, leading to a public trust crisis regarding its smart driving systems [6][22]. Group 2: Issues with Su7 Ultra - Xiaomi's handling of the Su7 Ultra's performance features raised concerns, as the introduction of a "ranking mode" limited the car's horsepower, creating dissatisfaction among users [7][9]. - The requirement for users to achieve certain track performance to unlock full power was seen as a high barrier, alienating potential customers [9][22]. - Xiaomi later canceled the "ranking mode," but the damage to user trust had already been done [11]. Group 3: Controversy Over Design Features - The introduction of a dual-channel front hood for the Su7 Ultra sparked controversy, as users discovered it was merely an aesthetic addition rather than a functional improvement [13][19]. - Xiaomi's initial claims about the hood's aerodynamic benefits were contradicted by user experiences, leading to further distrust [17][19]. - The compensation offered to dissatisfied customers, including points redeemable for shopping vouchers, did not satisfy many, prompting demands for refunds [22]. Group 4: Implications for Founder IP - The article emphasizes the importance of consistent internal and external communication for companies relying on founder IP, highlighting the need for clear messaging to avoid brand damage [24][26]. - It stresses that the strength of a founder's personal brand must be supported by the company's product quality and service capabilities to maintain customer loyalty [26]. - Establishing a robust crisis management mechanism is crucial for companies overly dependent on founder IP, ensuring a systematic response to negative events [27][30].

Investment Rating - The report maintains an "Outperform" rating for Xiaomi Group and several other companies in the automotive supply chain [4][5]. Core Insights - Xiaomi's Su7 Ultra was officially launched on February 27, 2025, with over 10,000 pre-orders within two hours, indicating strong market demand [1][23]. - The company achieved significant sales in 2024, with 248,000 orders and 135,000 deliveries for the Su7 model, receiving multiple industry awards [2][24]. - Xiaomi is investing heavily in AI, with a projected R&D budget of 30 billion yuan for 2025, of which 25% will be allocated to AI development [2][28]. - The company is entering the SUV market with the upcoming YU7 model, expected to launch in mid-2025, aiming to capture a significant share of the electric SUV segment [47][48]. Summary by Sections Xiaomi Su7 Ultra Launch - The Su7 Ultra standard version is priced at 529,000 yuan, significantly lower than the pre-sale price of over 800,000 yuan, making it more accessible to a broader consumer base [1][13]. - The vehicle features high performance, with a maximum power of 1548 horsepower and acceleration from 0 to 100 km/h in just 1.98 seconds [14][18]. 2024 Performance and Achievements - In 2024, the Su7 model achieved a wholesale sales volume of 140,400 units, with a monthly delivery capacity exceeding 20,000 units [34][51]. - The success of Xiaomi's automotive business is attributed to its long-term planning, strong investment ecosystem, and robust product quality [36][35]. Technological Advancements - Xiaomi's intelligent driving system, XIAOMI HAD, is set to launch by the end of 2024, with significant technological reserves including advanced suspension and control systems [3][44]. - The company has accumulated substantial AI computing power, reaching 11.45 EFLOPS, to support its intelligent driving initiatives [30][52]. Future Outlook - Xiaomi aims to exceed 400,000 vehicle sales in 2025, driven by the anticipated success of the YU7 model and continued demand for the Su7 Ultra [51][49]. - The company is also expanding its production capacity, with plans for a second factory to support increased demand [46].