Morgan Stanley maintained its overweight rating on Xiaomi with a HK$33 target price after the automaker's SkyNomad extended-range SUV lineup secured more than 10,000 locked orders within four minutes of launch. The bank expects the strong order flow to boost Xiaomi's EV shipments in the coming months as the company pursues its 550,000-unit annual delivery target.
Morgan Stanley reiterated its overweight rating on Xiaomi at HK$33 after the automaker's SkyNomad lineup locked more than 10,000 orders within four minutes of launch.
Customer feedback on the extended-range vehicles has been "very strong" and SkyNomad is "highly likely to succeed," the bank said in a research note published Monday. Morgan Stanley expects the strong order flow to lift Xiaomi's EV shipments in the coming months.
The SkyNomad lineup, Xiaomi's first extended-range electric vehicles, starts at 209,900 yuan ($30,960). The N70 Pro and N70 Max are priced at 209,900 yuan and 239,900 yuan, respectively, while the N90 Max and its Explorer edition cost 269,900 yuan and 299,900 yuan. The N70 Max is priced 20,000 yuan below its pre-sales level, and the N90 Max is 30,000 yuan lower — reductions of about 7.7 percent and 10 percent.
Xiaomi delivered 216,322 vehicles in the first seven months of this year, up 14.83 percent year over year, and August deliveries exceeded 30,000 vehicles. The company targets 550,000 deliveries this year, which would require average monthly deliveries of about 75,900 over the final four months.
Xiaomi has built an initial batch of SkyNomad vehicles ahead of launch, enabling deliveries within one to five weeks of order confirmation. All variants feature a 1.5-liter turbocharged range extender. The N70 Max offers a CLTC electric range of 505 kilometers, while the N90 Max has a combined range of 1,705 kilometers on a full tank and charge.
Cumulative vehicle deliveries surpassed 800,000 on Monday, about 29 months after deliveries of the SU7 sedan began, founder and CEO Lei Jun said. The SkyNomad launch broadens Xiaomi Auto's customer base beyond the battery-electric SU7 and YU7 models into the extended-range segment, competing with BYD and Nio in China's crowded EV market.
The maintained rating and HK$33 target reflect Morgan Stanley's confidence that SkyNomad order momentum can help Xiaomi close the gap toward its annual delivery target. Investors will watch monthly delivery figures over the coming months to determine whether the early order surge translates into sustained shipment growth.
This article is for informational purposes only and does not constitute investment advice.
