Xiaomi shakes up Chinese EV sector, keeping rival XPeng on its toes

Xiaomi Corp.’s foray into electric vehicles and how it might shake up the industry in China will be scrutinized when it reports earnings alongside established competitor XPeng Inc. next week. 

The smartphone giant’s multibillion-dollar bet on breaking into the competitive EV market, dominated by Tesla Inc. and BYD Co., will see its first model go on sale later this month. The sales start announcement sent its shares 11% higher on Tuesday. Meanwhile, XPeng may report deeper losses as it slashed prices to boost sales and keep up with rivals. 

Other Chinese firms expected to perform well include Tencent Holdings Ltd. and Meituan. Advertising, international games and fintech sales should boost quarterly earnings for Tencent, while Meituan’s revenue may rise after seeing success from expanding meal delivery services beyond mainland China. 

Plans for the US to advance a bill that may ban Chinese biotech firms from accessing federal contracts may impact the long-term outlook for firms including WuXi AppTec Co. The company, specifically mentioned in the bill, gets over half of its revenue from the US.

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