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Xiaomi Raises $5.5 Billion in Share Sale to Accelerate EV Plans

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Xiaomi Corp, the world’s third-largest smartphone maker, announced on Tuesday that it raised $5.5 billion in an upsized share sale as the company ramps up its electric vehicle (EV) manufacturing plans. The company sold 800 million shares at a price of HK$53.25 each, according to a statement to the Hong Kong Stock Exchange.

Originally planning to sell 750 million shares, Xiaomi decided to increase the size of the offering due to strong investor interest during the bookbuilding process. The final share price, which was at the lower end of the HK$52.80 to HK$54.60 price range, represented a 6.6% discount to Xiaomi’s closing price of HK$57 on Monday.

Investor enthusiasm for Xiaomi’s EV plans has played a significant role in the company’s stock performance, with its share price surging nearly 150% from HK$21.5 in the past six months. The sale attracted over 200 investors, with the book being oversubscribed multiple times. The top 20 investors purchased about 66% of the stock offered.

The funds raised will be used to further accelerate Xiaomi’s business expansion and invest in research and technology development, particularly in the EV sector. Xiaomi entered the electric vehicle market last year with the launch of the SU7 sedan. The company reported a 50% jump in fourth-quarter revenue and raised its target for EV deliveries this year to 350,000, up from 300,000.

Xiaomi’s EV business generated 32.1 billion yuan ($4.4 billion) in revenue in 2024, delivering more than 135,000 SU7 sedans. The company plans to start shipping cars overseas in 2027 and is expanding its production capabilities with a new land purchase for its auto factory in Beijing.

In addition to its EV ambitions, Xiaomi is also focusing on AI, planning to allocate 7-8 billion yuan out of its 2025 total R&D budget of 30 billion yuan to AI development. The share sale comes amid a wave of tech-focused capital raisings from Chinese companies, as positive sentiment around the tech sector grows, partly fueled by easing government scrutiny.

FCC to Explore Alternatives to GPS Amid National Security Concerns

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The U.S. Federal Communications Commission (FCC) announced on Wednesday that it plans to vote next month on a proposal to explore alternatives to the global positioning system (GPS) due to increasing national security concerns. GPS, essential for positioning, navigation, and timing across various sectors such as aviation, maritime, and automotive industries, has become a critical part of modern life. However, the FCC has raised alarms about the risks of relying solely on one system.

FCC Chair Brendan Carr emphasized the growing need for redundant technologies, stating that continued dependence on GPS exposes the nation to potential vulnerabilities. Recent reports indicate a rise in GPS interference, including spoofing incidents, particularly since 2023. Spoofing involves manipulating GPS signals, which could lead to accidents, such as planes deviating off course.

Carr pointed out that disruptions to GPS could have severe economic and national security consequences. Both President Donald Trump and bipartisan lawmakers have long urged for action to address these risks. As part of the inquiry, the FCC aims to evaluate other Positioning, Navigation, and Timing (PNT) systems that could complement or replace GPS.

The FCC’s vote on March 27 will begin a broader effort to engage stakeholders from both government and industry in developing alternative PNT technologies. The aviation industry, in particular, is heavily reliant on GPS for navigation, as it has largely replaced expensive ground-based navigation systems. However, the reliance on satellite signals makes GPS vulnerable to disruptions, prompting the Federal Aviation Administration (FAA) to collaborate with global partners to enhance satellite navigation security.