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Phonemaker Xiaomi Plans to Plow $10 Billion into Electric Cars

  • Chinese phone giant aims to outsource vehicle assembly
  • Market booms as prices fall, consumers embrace cleaner cars
Bloomberg business news
The Power Behind Electric Vehicles
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Xiaomi Corp. unveiled plans to invest about $10 billion over the next decade on manufacturing electric cars, embarking on its biggest-ever overhaul to enter China’s booming EV market.

Billionaire co-founder Lei Jun announced his intention to lead a new standalone division and spearhead the smartphone giant’s drive into vast but unfamiliar territory, in what he called his final major startup endeavor. The company will invest an initial 10 billion yuan ($1.5 billion) on smart vehicle manufacturing before ramping that up rapidly in subsequent years. Xiaomi’s stock rose as much as 6.1% Wednesday in Hong Kong.