Xiaomi's entry into the electric vehicle market is marked by significant financial challenges, as the company reported a loss of $9,200 for each of the 27,307 Speed Ultra 7 (SU7) EVs it sold in the second quarter of 2024. Despite this loss, Xiaomi achieved a gross profit margin of 15.4% during its first full quarter of vehicle sales, generating $883 million in revenue and $139 million in gross profit. The company's cost of goods sold (COGS) for the EV business was $744 million, indicating an operating margin of at least negative 28%. Xiaomi aims to expand globally, including plans for a presence in Europe, with aspirations to become one of the top five automakers in the coming decades. Analysts suggest that Xiaomi will need to sell between 300,000 to 400,000 vehicles annually to achieve profitability. The competitive landscape in China's EV market continues to intensify, with other manufacturers also reporting substantial losses per vehicle sold.