Imagine waking up to a world where buying a car isn't just about the thrill of the drive—it's a gold rush for quick bucks. That's exactly what happened when Xiaomi unveiled its groundbreaking electric vehicles, turning order lines into speculative fever dreams. But here's where it gets controversial: this boom-and-bust cycle raises big questions about greed versus genuine innovation in the EV space. Stick around, and you'll see how a market frenzy turned into a cautionary tale for amateur investors.
Xiaomi's debut into the electric car arena with the SU7 sparked an unprecedented excitement that felt less like a typical vehicle launch and more like the drop of a hot new smartphone. Enthusiastic entrepreneurs and tech enthusiasts weren't flooding in for the joy of cruising in this stylish EV; instead, many were snapping up deposits with the sole aim of reselling their place in the production queue for a substantial markup.
For a brief period, this strategy paid off big time. The reselling market for SU7 pre-orders exploded, with spots fetching premiums exceeding RMB 10,000—or about $1,400. Fast-forward to today, and that entire market has crumbled spectacularly. Countless novice 'car flippers' are now stuck with reservations valued far below what they initially paid. Reports from Chinese media outlets reveal that dealers are offering to repurchase SU7 bookings for a mere RMB 1,500, roughly $210.
Just a few months back, the buzz was electric—pun intended. Following Xiaomi's entry into the EV landscape with its second model, the YU7, the company racked up an astonishing 240,000 orders in the first 18 hours post-launch. This tidal wave of demand turned the scene into a scalper's playground. Eager purchasers, frustrated by official wait times, forked over hefty sums to jump the line sooner.
YU7 order transfers were commanding markups ranging from RMB 3,000 to RMB 20,000 ($420 to $2,800), though prices eventually dipped to as low as RMB 2,000 ($280). With the original deposit set at RMB 5,000 ($700), those selling out are now eating a loss of approximately RMB 3,000 ($420) just to cut ties.
What flipped this seemingly profitable gig into a financial sinkhole? At its core, it's a textbook example of supply outpacing demand. The market got inundated with speculative purchases. When hordes of people chase the same get-rich-quick scheme—buying cheap and flipping high—they end up with an abundance of sellers and a scarcity of willing buyers at inflated prices.
As one straightforward car dealer put it to journalists, 'Two months ago, folks were handing over RMB 10,000 ($1,400) extra. Now, even slashing RMB 3,000 ($420) off doesn't attract a single bite.' But here's the part most people miss: this isn't just about economics; it exposes the pitfalls of hype-driven investing for beginners who might not grasp how quickly bubbles can burst.
The speculation bubble burst thanks to some harsh truths. Foremost, Xiaomi's official delivery schedules for new YU7s dragged out to a daunting 48 weeks for certain variants. While this boosted resale values at first, it soon became a major turn-off. Prospective buyers started realizing they'd be better off submitting their own order and biding their time rather than shelling out extra to a reseller for just a marginal head start.
Market vibes were further shaken by a troubling incident in Chengdu, where an SU7 was caught up in a deadly crash and ensuing blaze. Coverage emphasized that the car's electronic doors couldn't be accessed by outside helpers, igniting serious safety worries that undoubtedly dampened interest among potential owners. And this is where controversy heats up: does this accident signal inherent flaws in Xiaomi's designs, or is it an isolated event blown out of proportion by media hype? It's a debate worth pondering, especially as EV safety becomes a hot-button topic in an industry still evolving.
Interestingly, while the paper-order flipping game has gone sour, real-world interest in the actual vehicles stays robust. On the used car front, a Xiaomi YU7 with barely 62 miles on the clock can still command about RMB 10,000 ($1,400) over its list price. This suggests the cars themselves are a hit—consumers crave the real deal, but they're drawing the line at overpaying for a mere promise.
For Xiaomi, this market shake-up isn't a disaster by any stretch. The brand's fundamentals remain rock-solid. In September, they moved 41,948 EVs, positioning them as the second-largest new energy vehicle maker in China. Expansion is underway too, with 402 outlets now dotting 119 cities across the country.
So, what do you think? Is the collapse of this flipping frenzy a sign that EV hype is unsustainable, or just a natural market correction? Do you blame speculators for inflating the bubble, or Xiaomi for not managing expectations better? Share your take in the comments—let's debate whether this is a lesson in smart investing or a missed opportunity in innovation.
Via (https://carnewschina.com/2025/10/16/xiaomi-car-order-transfer-market-cools-down-as-premiums-turn-to-discounts/)
