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Title: Xiaomi’s Lei Jun Becomes China’s Fifth Richest Person On EV Optimism
Xiaomi CEO and founder Lei Jun has taken the fifth spot on Forbes’ list of richest people in China after a 250% surge in his net worth over the past year. The rapid increase is largely due to growing optimism around his company’s electric vehicle (EV) business.
According to estimates, Lei Jun’s net worth now stands at $35.3 billion, with Xiaomi’s investors betting heavily on the company’s potential in the EV market. This newfound wealth catapults him above his peers, solidifying his position among China’s top five billionaires.
Xiaomi’s shares have skyrocketed by 27.2% this year alone, eclipsing a more modest 9.1% gain in Hong Kong’s Hang Seng Index. This meteoric rise is largely attributed to the company’s aggressive expansion into the EV space.
“We’re witnessing an unprecedented surge of interest in Xiaomi as investors are increasingly enthusiastic about Lei Jun’s vision for the company,” said Eric Wen, head of research at Blue Lotus Capital Advisors. “As a result, we’re seeing significant gains across the board.”
While some critics have questioned the high valuation of Xiaomi’s stock, analysts point out that it is not entirely unjustified given the company’s rapid growth and Lei Jun’s leadership.
“It’s difficult to justify the price of the stock when you look at traditional metrics like earnings per share,” said Ke Yan, head of research at DZT Research. “But what’s happening here is a convergence of two megatrends – electric vehicles and artificial intelligence. It’s only logical that investors would be excited about this intersection.”
Xiaomi’s foray into the EV market has been a significant factor in driving up its stock price. The company aims to deliver 300,000 vehicles in 2025, a bold target given the intensely competitive nature of the industry.
Despite challenges in meeting this goal, analysts remain optimistic, with Wen predicting that Xiaomi will not only meet but exceed Lei Jun’s expectations. “The company’s competitive position in the smartphone market has improved significantly, and EVs are really the main driver behind the stock price,” he emphasized.
It appears that investor sentiment is firmly planted on the side of optimism when it comes to Xiaomi’s electric vehicle ambitions.
Source: http://www.forbes.com
