Xiaomi's Lei Jun takes aim at Tesla with launch of EV 'Thor'

Lei Jun, the co-founder and CEO of Xiaomi, is making waves in the electric vehicle (EV) market with the launch of Xiaomi's much-anticipated electric car, SU7. With this move, Lei is stepping into the ring with Elon Musk's Tesla, adopting a strategy reminiscent of Musk's playbook.

The unveiling of Xiaomi's SU7, a project three years in the making, marks Lei's ambitious foray into the EV sector. Despite warning investors of potential losses, Lei showcased his confidence during the launch event in Beijing, even taking a jab at Apple for abandoning its car project and proclaiming Xiaomi's EV superiority over Tesla's Model 3.

Given Lei's charismatic presence and marketing acumen, often likened to that of Musk, he has earned the nickname "Thor" among fans on social media. His attire during the event, resembling something Musk would wear, further fuelled comparisons between the two tech titans.

Lei's journey to this point has been remarkable. From co-founding Xiaomi in 2010 to steering the company to a valuation of $46 billion by 2014, he has established himself as a visionary leader in the tech industry. Xiaomi's success with smartphones and home appliances has propelled it to the forefront of Chinese households, known for its affordable yet stylish products.

However, the launch of the SU7 represents a new challenge for Xiaomi as it ventures into the premium EV market. Lei's decision to enter this space underscores his ambition to diversify Xiaomi's offerings and tap into new segments.

With the SU7 priced competitively below $30,000 for the base model, Xiaomi aims to capture market share in China's bustling EV industry. The company's partnership with state-owned automaker BAIC Group further strengthens its position, leveraging existing manufacturing capabilities to scale production.

Despite the buzz surrounding Xiaomi's entry into the EV market, analysts remain divided on its long-term prospects. While some view it as a bold move with potential, others caution against losing focus on Xiaomi's core products and sectors.

Lei, however, remains undeterred, expressing confidence in Xiaomi's ability to weather competition and accumulate cash reserves for future growth. With 50,000 orders received within minutes of the SU7 going on sale, Xiaomi's foray into EVs has certainly captured the attention of consumers and industry observers alike.

(With Reuters inputs)