In recent developments within the electric vehicle industry, Xiaomi's CEO, Lei Jun, has clarified the company's stance on entering the American market. Following the appearance of a Xiaomi SU7 Sedan in California, leading to speculation about a potential U.S. debut, Jun explicitly stated that there are no current intentions for such an expansion. This announcement comes amidst a dynamic global EV landscape, with various manufacturers navigating competitive territories and regulatory frameworks.
The speculation gained traction after photos emerged showing a Xiaomi SU7 Sedan being tested on a California highway, bearing a local test license plate. This sparked rumors among industry observers and the public alike, suggesting Xiaomi might soon challenge established players like Tesla in the U.S. market. However, Lei Jun took to the Chinese social media platform Weibo to directly address these conjectures, emphasizing that the company's EV arm is not planning a foray into the United States at this time. He suggested that the vehicle in question was likely acquired by a different company for testing purposes.
This clarification by Xiaomi's top executive is particularly noteworthy given the intense competition in the global electric vehicle sector. The U.S. market, in particular, is largely dominated by Tesla, which holds a significant market share. Tesla's Model Y, for instance, was recognized as the leading EV in the U.S. for 2025. Against this backdrop, any new entrant, especially from a major Chinese manufacturer, would face considerable challenges and scrutiny. Moreover, the news followed earlier reports of a potential collaboration between Ford Motor Co. and Xiaomi, which Ford subsequently denied. Ford's CEO, Jim Farley, has previously expressed admiration for Chinese EVs, acknowledging their competitive nature while also exploring battery partnership opportunities with companies like BYD Co. Ltd. for its hybrid vehicles.
Despite the strong performance of its SU7 Ultra model in China, which met the CEO's sales target of 10,000 units, the vehicle experienced a notable decline in sales in December 2025, with only 45 units sold. This suggests that while Xiaomi has achieved some domestic success, the journey into international markets, especially highly competitive ones like the U.S., requires careful strategic planning and significant investment. The company's focus remains on its established markets, with no immediate plans to diverge from this strategy.
Lei Jun's decisive statement effectively dispels the rumors, providing a clear picture of Xiaomi's immediate strategic priorities for its electric vehicle division. It underscores the cautious approach many international automakers take when considering entry into new, complex markets, preferring to solidify their positions in existing territories before venturing further.