The news: Xiaomi, the world’s third-largest smartphone company, announced its plans to launch its first EV in 2024. Xiaomi will release new cars in each of the following three years for an estimated sales of 900,000 EVs by 2027, per Elektrek.

Why it’s worth watching: Xiaomi is the first major smartphone vendor pivoting toward EVs—Apple, rumored to have been developing a car for years, has not formalized its plans. In Asia, Xiaomi is a manufacturing powerhouse, producing smart home devices, appliances, electric bicycles, and mopeds. 

The opportunity: China has the largest EV industry, including more than 300 manufacturers, but the government is struggling with consolidating smaller vendors to manage overcapacity. Despite a glut of EV companies, China doesn’t have a preeminent manufacturer to rally behind. If Xiaomi is successful, it can become China’s Tesla. 

• China, the world’s largest emitter of greenhouse gas, mandated that EVs make up 40% of all vehicle sales by 2030, which is in tune with Xiaomi’s target of producing a million EVs by 2027.
• Xiaomi has also invested in AV technology, indicating that a shift to EV production is its logical next step.