Xiaomi, a leading Chinese smartphone manufacturer, is poised to reveal its first electric vehicle (EV) on Thursday amidst an $8 billion stock rally. This move comes at a challenging time for the Chinese automotive sector, which is experiencing a slowdown after years of rapid growth supported by government initiatives. The world's largest EV market is now facing increased competition and market pressures, making Xiaomi's entry a significant test of its ability to diversify and compete in new sectors.