XIAOMI STORES FUEL TO STOKE CHINA'S CAR BATTLES

Xiaomi is primed to launch the next salvo in China’s car wars. The smartphone-to-autos maker reported, record first-quarter revenue on Tuesday, while adjusted net income rose by two-thirds to $1.5 billion. A 10% profit margin and deep pockets mean it can afford to be more ambitious. That bodes ill for Tesla, Xpeng and other rivals.

At first glance, founder Lei Jun’s fast-paced strategy looks hard to sustain. His fledgling electric-car business is growing rapidly, but has yet to turn a net profit. At the same time, he is investing heavily in new technology and plans to splurge $7 billion on chips over the next decade.

Learn More