China to urge Iran to leave Strait of Hormuz open, avoid military response to US: Strategist
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Yahoo
5 minutes ago
- Yahoo
US tech stocks hit by concerns over future of AI boom
US tech stocks sold off as warnings that the hype surrounding artificial intelligence could be overdone hit some of the year's Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 minutes ago
- Yahoo
Xiaomi Plans Europe Foray in 2027 After EV Sales Gains Pace
(Bloomberg) -- Xiaomi Corp. intends to sell its first electric vehicle in Europe by 2027, declaring plans to take on Tesla Inc. and BYD Co. globally after gaining traction with its year-old Chinese EV business. President Lu Weibing shed more light on the company's expansion plans after reporting a 31% rise in quarterly revenue, riding the successful launch of its second EV over the summer. That helped counter slowing demand for smartphones. Why New York City Has a Fleet of New EVs From a Dead Carmaker Chicago Schools Seeks $1 Billion of Short-Term Debt as Cash Gone A Photographer's Pipe Dream: Capturing New York's Vast Water System Trump Takes Second Swing at Cutting Housing Assistance for Immigrants A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome Xiaomi has previously described ambitions to go global, though it's never specified a target market. While Europe is a common destination for Chinese EV makers seeking to tap a more lucrative arena, considering they can often sell their cars with higher margins there, they do face punitive tariffs. Were Xiaomi to export its EVs to Europe, it would likely be subject to tariffs of up to 48%, including a base 10% import duty and additional countervailing levies of around 35% to 38%. Those measures were imposed by the European Union in response to what it deems unfair state subsidies provided to Chinese EV makers, which the bloc argues distorts market competition and threatens local manufacturers. Chinese EV makers also face tariffs of 100% if they want to sell their cars in the US. That's effectively shut them entirely out of the market. Read: Europe Warms to China's Investments in Face of US Tariffs Regardless, strong demand for the YU7 sport utility vehicle, which co-founder Lei Jun released at the end of June, is propelling Xiaomi's $10 billion gamble on the increasingly crowded EV arena. The company aims to become one of the world's top five carmakers within 15 to 20 years, despite a production crunch that's testing its ability to scale up. Wait times for the SUV have stretched to more than a year. 'The business model we have developed in China can also apply in overseas market when we get into Europe,' Lu told analysts on a call. 'We're doing the research and preparation. So far we have not got the specific product plan yet.' Revenue climbed to 116 billion yuan ($16.2 billion) in the June quarter, just edging past average analyst estimates. The tech giant delivered 81,302 cars, taking the total to more than 157,000 in the first half — on track to surpass 2024's haul. But smartphones — its original and largest business — slid 2.1% and missed the average projection by about 5%. While Xiaomi doesn't expect smartphones to see much growth this year, the company's goal is to increase its market share in China by 1% every year, Lu told reporters on a post-earnings call Tuesday. It expects growth of about 5 to 6 percentage points in shipments this year to 175 million devices, executives said. Losses from the EV division narrowed to about 300 million yuan during the period. Lei said at an investor meeting in June that the automaking venture is expected to turn profitable in the second half of this year. Xiaomi has gained some $120 billion of market value over the past year, galvanized by its drive into EVs that's gained momentum against much larger and more experienced rivals. The company seems to have shaken off a fatal accident involving one of its SU7 sedans in March, which had its Autopilot turned on. The crash prompted regulators to rein in the deployment of advanced driver assistance technology nationwide. The Chinese government also intervened in June to try to stop a long-running price war that has squeezed margins all along the auto supply chain. Xiaomi has avoided getting embroiled in the discounting thanks in large part to demand for its vehicles remaining very high. Xiaomi's overall net income roughly doubled to 11.9 billion yuan, helped by fair value gains on financial instruments. Still, the stock is now trading at more expensive valuations than BYD as well as global smartphone rival Samsung Electronics Co. What Bloomberg Intelligence Says Xiaomi's robust 3.2 percentage point EV gross margin sequential growth in 2Q reflects improving economies of scale and a favorable product-mix shift, helping together with solid internet-of-things growth to offset smartphone headwinds. The ramp-up of Xiaomi's second EV factory and a rising sales mix of the YU7 SUV could boost margin, supporting breakeven in the EV segment by end-2025 and potentially driving a 2025-26 profit beat. - Steven Tseng and Sean Chen Click here for the research. Xiaomi is grappling with a slowdown in its core business and sluggish consumer spending. Along with rivals Apple Inc. and Huawei Technologies Co., it's been offering steep discounts over the big June shopping festival in an attempt to lure shoppers, pressuring margins. AI and chip design is another arena where Xiaomi is ramping up resources. The Beijing-based firm unveiled a 3-nanometer chip called the Xring O1 chip, designed to power devices including the Tablet 7 Ultra. Lei said the company would invest $7 billion this decade into semiconductors. (Updates throughout with context, comments from press call.) 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Business Insider
7 minutes ago
- Business Insider
The White House just joined TikTok a month before it's set to be banned (again)
A lot can change in a year — just ask TikTok. Last year, the US government took the extraordinary step of voting to ban the popular app used by millions of Americans, citing national security concerns. On Tuesday, the White House became its latest user. The White House TikTok account launched with a video montage of President Donald Trump narrated by the man himself. "Every day I wake up determined to deliver a better life for the people all across this nation," Trump says over images of him with UFC head Dana White, law enforcement officers, and American workers. "I am your voice!" The account's second post featured various shots of the White House during different seasons. The White House joined the app less than a month before it's set to be banned in the US on September 17 unless it's sold to a US buyer, though that deadline has already been extended several times. "The Trump administration is committed to communicating the historic successes President Trump has delivered to the American people with as many audiences and platforms as possible," Karoline Leavitt, White House press secretary, said in a statement to Business Insider. "President Trump's message dominated TikTok during his presidential campaign, and we're excited to build upon those successes and communicate in a way no other administration has before." The White House did not respond to questions about whether the divest-or-ban deadline would be extended again or if a deal was expected by the deadline. Lawmakers in April 2024 voted to ban TikTok unless its China-based parent company, ByteDance, sold its American assets. Some officials cited concerns that sensitive data belonging to American users could end up in the hands of the Chinese government, and members of Congress have said it could be used for Chinese Communist Party propaganda. TikTok has said it does not share data with the Chinese government. The TikTok divest-or-ban law, signed by President Joe Biden last year, gave TikTok until January 19 to sell or risk shutting down. The app briefly went dark that day for US-based users before coming back online, with TikTok crediting Trump for its return. The White House has said the president does not want TikTok to go dark and prefers it be sold. Trump has delayed the divest-or-ban deadline three times since taking office in January. Commerce Secretary Howard Lutnick told CNBC last month that TikTok will go dark again unless China agrees to a deal that will give Americans control over the app. "We've made the decision. You can't have Chinese control and have something on 100 million American phones," Lutnick said, adding that China's decision would be coming "very soon."
