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Investing.com--Xiaomi Corp (HK:1810) shares fell in Hong Kong trade on Thursday after the Chinese internet giant logged a month-on-month drop in electric vehicle deliveries, which spurred some profit-taking in the stock.
Xiaomi (OTC:XIACF) fell 4.2% to HK$57.60, driving a 0.7% drop in the Hang Seng index.
The stock also faced some profit-taking after hitting a record high on Monday.
Xiaomi said on Wednesday that it delivered more than 25,000 EVs in June, which, while higher from a year ago, fell from May’s tally of over 28,000 units.
The company faced some EV headwinds in June, after it became embroiled in concerns over safety issues with its vehicles after a deadly crash in May.
The company also faced heightened customer backlash over allegedly false advertising around a performance part for its SU7 EV.
Concerns over heightened competition in China’s red-hot EV market also weighed on Xiaomi, after middling monthly sales figures from other EV majors in the country. BYD (SZ:002594) remained a dominant force, while Tesla (NASDAQ:TSLA) clocked a small increase in sales.
Still, Xiaomi’s EV prospects appear strong, especially after its launch of the YU7 model drew preorders of nearly 300,000 within minutes of going online. This was a major driver of Xiaomi’s shares earlier in the week.
Xiaomi’s success in the EV market also saw its shares trading up 241% over the past 12 months, while demand for its core electronics business was underpinned by more subsidies from Beijing.
CEO Lei Jun said that the company will consider selling cars outside China only from 2027.