Morgan Stanley expects Xiaomi’s refreshed SU7 electric vehicle to find success following the model update, noting strong initial public interest and a range of engineering and software enhancements.
The launch drew significant attention on Xiaomi EV’s own channels, recording over 55 million viewers, with additional audiences tuning in via other platforms. Morgan Stanley highlighted that this level of viewer engagement accompanied the product unveiling.
On the software side, Xiaomi introduced its XLA Cognitive Large Model for the updated SU7. The system is described as taking multiple inputs and incorporating Xiaomi’s self-developed MiMo-Embodied foundation model to learn and interpret complex scenarios. The company says the new system can assist drivers with parking in shopping malls by positioning the vehicle as close as possible to a chosen restaurant or store, and it also aims to deliver an improved advanced driver assistance system experience.
Separately, an early test build of MiMo dubbed Hunter Alpha - described as MiMo - V2 - Pro in early testing - reached the top position on the daily API call volume chart at OpenRouter. Xiaomi has also announced plans to commit Rmb60 billion to artificial intelligence development over the next three years.
Morgan Stanley’s note enumerated the tangible changes included in the SU7 facelift. These listed items include a longer driving range, a stronger motor and chassis package, enhanced safety measures, more comfortable seats, a broader palette of color options, improved noise control and sun protection, and a smoother smart cabin experience driven by upgraded software.
The collection of updates spans both mechanical and digital domains, with the firm pointing to upgrades in propulsion and chassis as well as to the vehicle’s in-cabin technology and occupant comfort.
Key takeaways:
- Morgan Stanley expects the SU7 facelift to perform well in the market, supported by high launch viewership and product enhancements.
- Xiaomi is deploying a new XLA Cognitive Large Model that integrates the MiMo-Embodied foundation model to handle complex scenarios and improve parking and driver-assist functions.
- The company plans a Rmb60 billion investment in AI over three years, and an early MiMo test version, Hunter Alpha (MiMo - V2 - Pro), led daily API call volume on OpenRouter.
Sectors affected: Automotive, technology/software, and consumer electronics.
Risks and uncertainties:
- The MiMo-based features referenced include early test versions such as Hunter Alpha (MiMo - V2 - Pro), indicating that some software components may still be in development or validation phases.
- While Xiaomi recorded over 55 million viewers on its own channel and additional unspecified audiences on other platforms, the article does not provide data on sales conversion or market uptake following the launch.
- The Rmb60 billion AI investment plan is a material commitment; the article does not specify timelines for deployment or the expected return profile from that expenditure.