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On April 23rd, during today's Xiaomi Group Investor Conference, Lei Jun addressed investors' questions regarding the gross profit margin of the SU7 and at what level the overall break-even point would be.

Hei Bai Wed, Apr 24 2024 09:55 AM EST

Lei Jun expressed gratitude to all global partners for their support, as they remain optimistic about Xiaomi's venture into the automotive industry.

"Some experts, after dismantling the SU7, commented that it's 'filled with the flavor of the Chinese currency', because all the components used are top-notch products from leading suppliers in various industries," Lei Jun stated.

Lei Jun mentioned that many people have dismantled the Xiaomi SU7, and they all know that this is definitely not an exaggeration. The vast majority of suppliers are suppliers to BBA (Mercedes-Benz, BMW, Audi).

Lei Jun estimated that the gross profit margin of Xiaomi SU7 would be approximately 5-10%. However, due to sales exceeding expectations by a significant margin, the specific figures still need careful calculation. "With such expensive suppliers and components, the gross profit margin won't be very high."

Finally, Lei Jun expressed gratitude to the suppliers once again: "I am truly grateful to the suppliers. From day one, they believed that Xiaomi's cars could succeed and provided us with very good costs and support." s_f399a622468349158fa8dee3e9ac2c7e.jpg