Goldman Sachs keeps Xiaomi Buy rating, HKD40 target on SKYNOMAD launch

Goldman Sachs maintained its Buy rating on Xiaomi with a HKD40 target price after the SKYNOMAD launch, calling the pricing potentially disruptive.

"The pre-sale pricing of the SKYNOMAD series is potentially disruptive to China's auto market, given its industry-leading interior space, range support and unique ecosystem integration," Goldman Sachs said in a report.

Goldman forecasts SKYNOMAD deliveries of 110,000 units in 2026 and 240,000 units in 2027. The broker views the Kunlun platform as delivering large-scale, intelligent and fully configurable interiors, featuring a flat floor and long-track system.

Xiaomi shares fell 6.9 percent on the day, with short-selling volume of $2.61 billion and a short-selling ratio of 36 percent. The launch comes as Xiaomi seeks to boost deliveries after first-half EV sales reached only about one-third of its annual target.

Xiaomi unveiled the SKYNOMAD series at an automotive technology launch event on July 30, alongside the new Xiaomi Kunlun Architecture platform. The N70 Max is priced at 259,900 yuan ($38,410) and the N90 Max at 299,900 yuan ($44,397). The flagship N90 Max, a seven-seat SUV that Xiaomi describes as "a house you can move," combines a 76-kilowatt-hour battery with a 1.5-liter turbocharged range extender and a 60-liter fuel tank, offering a combined range of up to 1,705 kilometers.

The N70 Max offers an EV-only range of up to 505 kilometers under the CLTC standard, configurable as single-motor rear-wheel drive with 282 horsepower or dual-motor all-wheel drive with 416 horsepower. Both models are built on the Kunlun architecture, which features a flat floor and six seat rails forming a 2+2+3 seating layout, with the second and third rows moving almost freely fore and aft.

Goldman said the native platform will become a key technological differentiator for SKYNOMAD, while the long-range support provided by the Xiaomi Kunlun super range extender is expected to attract traditional fuel-vehicle consumers. The broker also noted that Xiaomi's deep involvement in battery manufacturing indicates the group is mastering core technologies rather than merely acting as a battery purchaser.

Xiaomi will take pre-orders starting Thursday and bring the vehicles to market in September, CEO Lei Jun said. "Six seats are not enough for families... If we compare a vehicle to a house, we can freely arrange our space and decorate," Lei said at the launch event.

The maintained rating and delivery forecasts show Goldman's conviction that SKYNOMAD can lift Xiaomi's vehicle volumes as it pushes into the family SUV segment. Investors will watch September deliveries and the planned European launch next year as the next catalysts.

This article is for informational purposes only and does not constitute investment advice.