Xiaomi Corp planning to produce electric vehicles (EVs) at Great Wall Motor Co Ltd's plant, making it the latest tech company to join the smart mobility race.
After Reuters announced the proposal, the stock price of the tech company jumped as much as 6.71% in early Friday trading. Great Wall's Hong kong stock rose above 8%, while its Shanghai shares gained above 7%.
Smartphone manufacturers, is in talks to use one of Great Wall's Chinese factories to produce electric vehicles under its own name.
Xiaomi will sell its electric vehicles to the mass market, in line with the company's broader positioning of electronics products.
Xiaomi's this step looks to diversify its revenue sources away from the smartphone market, which accounts for the majority of its revenue but has razor-thin profit margins. On Wednesday, it warned of increased costs due to a global chip shortage and posted quarterly revenue that fell short of expectations.
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