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Xiaomi to invest $10 billion to launch electric car

Xiaomi kicked off its new smart vehicle business. In a statement posted on Twitter on Tuesday (30), the Chinese company announced that it will invest about $10 billion over ten years to launch its electric car. The new subsidiary for the automotive sector will also be commanded by Lei Jun.

The Chinese company’s initiative will start with an investment of 10 billion yuan or about $1.5 billion. Altogether, over a period of ten years, the Chinese company plans to allocate around $10 billion to its new business.

Xiaomi car concept. Credits : The infotic

“The company will set up a wholly owned subsidiary to operate the smart electric vehicle business,” they announced. “Lei Jun, CEO of the group, will simultaneously act as CEO of the smart vehicle business.”

The announcement comes after the appearance of rumors about the launch of an electric car from the company. This is the case with behind-the-scenes information about the development of a car to compete with Tesla that went public in February. Days later, Xiaomi said there was no approved project for the auto industry.

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