On July 30th, Xiaomi dropped a bombshell at the second Automotive Technology Day—officially launching the new "Kunlun" technology architecture and the "SkyNomad" extended-range SUV series. This marks Xiaomi's official crossover from the sporty pure electric market into the large-space, range-extended home market. Among them, the flagship seven-seat N90 Max and the large five-seat N70 Max have pre-sale prices set at 299,900 yuan and 259,900 yuan respectively.

Faced with Xiaomi's move, Wall Street's investment banking heavyweights quickly split into two camps:

1. Optimists (Morgan Stanley, Deutsche Bank): This is the "shot in the arm" driving sales.

They believe Xiaomi's pricing this time is very aggressive, clearly aiming to use a "price for volume" strategy to fully pursue the annual sales target of 550,000 units in 2026. These two new models will serve as strong catalysts for Xiaomi's order growth in the second half of the year.

2. Worried Faction (Citibank, Nomura): Beware of "losing money to make noise" and "fighting left and right."

They issued warnings to investors:

Gross margins are worrying: under such aggressive pricing, Xiaomi still has to maintain extreme hardware stacks (such as large batteries, air suspension, etc.), and Xiaomi's gross margin will face huge uncertainty.

Internal Conflict: The newly launched N70 series is highly likely to compete internally with Xiaomi's own pure electric SUV YU7, leading to internal conflicts of "left-right battles."

Now, everyone's focus has changed. The market no longer doubts whether "Xiaomi can make good cars," but instead worries about "whether Xiaomi can successfully sell so many cars and absorb massive production capacity while maintaining profits (gross margin)." This has become the most central point of contention right now.

| Xiaomi Pricing "Flips the Table": Breaking Wall Street Expectations

Xiaomi's pricing of the new "Pengcheng" model completely disrupts Wall Street's calculations. Major investment banks analyze that Xiaomi is determined to "trade price for volume" this time, with only one core logic behind it: an intense desire for sales.

1. Pricing "flipping the table": Breaking expectations and reshaping industry benchmarks

Below expectations: Nomura Securities pointed out that the market originally expected the N90 series to sell for 300,000–350,000 yuan, and the N70 series for 250,000–300,000 yuan. But Xiaomi directly set the N90 Max at 299,900 yuan and the N70 Max at 259,900 yuan, both at the lowest point of their expected range.

Lower entry barrier: Morgan Stanley predicts that after its official launch in September, Xiaomi will also launch "Standard Edition" and "Pro Edition." At that time, the price of the N70 series will drop to 200,000 to 250,000 yuan, while the N90 series will cover the 250,000 to 300,000 yuan range.

Dimensionality Reduction Strike: Citibank found that although the N90 Max's pricing is similar to the Ledao L90 Pro (starting at 265,800 yuan), its price is cut in half compared to competitors like the Li Auto L9 (starting at 509,800 yuan) and AITO M9 (starting at 479,800 yuan), potentially redefining the "cost-performance ceiling" for large family SUVs.

2. 树敌无数：无差别扫射，通吃中高端市场

Deutsche Bank considers Xiaomi's move to be an "indiscriminate attack":

Downward: Directly capturing market share from mid-range SUV brands like BYD, Leapmotor, XPeng, Geely, and Volkswagen.

Upward: Strong impact on high-end brands such as Li Auto, Tesla, Zeekr, and AITO.

3. Why is it so hard to work so hard? The 'life-or-death line' of 60,000 units sold monthly in the second half of the year

Deutsche Bank bluntly pointed out that Xiaomi's aggressive approach was entirely driven by its sales targets.

Progress is seriously lagging: Xiaomi's full-year goal for 2026 was to sell 550,000 vehicles, but only sold 180,000 in the first half, a completion rate of just 34%.

Order Crunch: New orders in July remained sluggish, hovering around 5,000 units in a single week.

Fighting with all my does: This means Xiaomi must sell an average of 61,000 vehicles per month in the second half of the year to meet its KPI. Therefore, the launch of the "Pengcheng" series is seen as a key catalyst for Xiaomi to boost orders and reverse its downward trend in the second half of the year.

| Xiaomi's "Kunlun" architecture is a hardcore ledger

In terms of product strength, Xiaomi aims to redefine the space and configuration standards of family SUVs through a brand-new "Kunlun" architecture. Research reports from Citibank and Deutsche Bank thoroughly break down this high-spec "hardware ledger":

1. Two Max models: large battery + high computing power, fully loaded configurations across the lineup

N90 Max (Seven-seat Flagship): Over 5.2 meters long, equipped with a 76-kWh battery, pure electric range of 464 km, combined range up to 1705 km. The dual-motor all-wheel drive delivers 0-100 km/h acceleration in 5.9 seconds. Inside, there is a flat 2.9-meter floor, and the trunk can be expanded up to 1831 liters.

N70 Max (Large Five-Seater): Nearly 5 meters long, also equipped with a 76-kWh battery, a class-leading pure electric range of 505km, combined range of 1461km, and 0-100 km/h acceleration in just 5.5 seconds.

Chassis and intelligent driving: Both models come standard with air suspension, CDC shock absorbers, LiDAR, and the NVIDIA Thor intelligent driving chip with computing power up to 700 TOPS.

2. Price Reductions Without Quality Compromise: Switch to second-tier battery suppliers to control costs

With such aggressive pricing, Xiaomi still has to maintain extreme hardware specs—how does Xiaomi manage its costs?

Deutsche Bank keenly picked up on the clues:

To support this high-spec hardware, Xiaomi introduced more cost-effective battery suppliers—Sunwoda and CALB—to the "Pengcheng" series, replacing CATL and BYD, which previously used pure electric models. By diversifying its supply chain, Xiaomi has successfully left profit margins for aggressive pricing.

| Wall Street's concerns: Need to "lose money to gain attention" while also guarding against "left-right conflict"

Although Xiaomi's new car features are highly attractive, Wall Street analysts have not been swept away by frenzy. They clearly pointed out to investors the two core risks hidden behind Xiaomi's recent moves:

1. Profit concerns: Hardware is heavily stacked, severely squeezing profit margins

Citibank pointed out that Xiaomi's pricing logic has a core contradiction: on one hand, the new car is equipped with a 76-degree large battery, dual motors, air suspension, LiDAR, and other extremely expensive hardware, resulting in very high material costs; On the other hand, aggressive low-price strategies have directly suppressed gross margins.

To this end, Citi recommends that after the official pricing in September, investors should focus on four key indicators: whether final pricing has been adjusted, order conversion rate, capacity ramp-up speed, and whether reasonable model gross margins can be maintained at low prices.

2. Sales Challenge: The "Extreme Climb" of Nearly 40,000 Units Sold Monthly in the Second Half of the Year

Nomura Securities did the math: assuming the existing SU7 and YU7 sales remain steady, to achieve the annual goal of 550,000 units, the newly launched SkyNomad series will need to deliver about 156,500 units between September and December. This means nearly 40,000 units must be sold each month, a ramp-up speed that seems too aggressive.

Kingtech Perspective | Focus on "Supply Chain" and "Sales Validation"

The launch of the Pengcheng series marks Xiaomi Auto's official transition from the 0-1 stage of "making good cars" into the deep 1-N zone of "selling good cars while making money." The pricing of 299,900 yuan and 259,900 yuan completely breaks the industry's traditional premium pricing system, demonstrating Xiaomi's strong capabilities in "ecosystem integration" and "supply chain price control."

But the capital market is currently more focused on: under the extreme hardware stack, can Xiaomi hold the bottom line of its gross margin? This will be the core variable determining whether Xiaomi Auto's valuation can further rise.

Discovering the "hidden champions" of Xiaomi's automotive supply chain
Under Xiaomi's aggressive strategy of "price for volume," automakers' profit margins will be squeezed, but the huge sales volume will feed back into the upstream supply chain.

It is recommended that investors focus on core component companies entering Xiaomi's automotive supply chain. Especially in the "second-tier battery suppliers" Xiaomi introduced to control costs (such as Sunwoda and CALB), as well as in core hardware areas like air suspension and intelligent driving chips, those "water sellers" who can achieve high performance growth alongside Xiaomi Auto's sales boom have very high certainty.

Focusing on the "September Exam," Davis Double-Taps
on Sales and Production Capacity Currently, market concerns about Xiaomi mainly focus on "capacity ramp-up" and "internal friction." For investors, the official launch of the Pengcheng series and the first batch of delivery data in September will be a crucial "winning move."

If monthly deliveries in September and October can successfully surpass the 10,000 mark and the ratio of small orders to large orders exceeds expectations, it will directly disprove concerns about "capacity bottlenecks" and "left-right battles," leading to valuation recovery. Conversely, if deliveries fall short of expectations, the stock price may face a second bottom. It is recommended that investors remain cautious before the September data is released, and wait for a clear signal on the right before making heavy positions.