The biggest smartphone brand Xiaomi has officially moved into the Electric car Business. The Chinese tech giant has officially registered a company that will produce electric cars. In their own words, the founder sated that, the new company has already entered a “significant phase of development”.

The name of the new company is Xiaomi EV, Inc., and the registered capital is $ 1.55 billion. Back in March, Xiaomi has announced its interest in investing $10 billion in the production of electric vehicles over the next decade.

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From the reports so far, the new Xiaomi Vehicle Company is headed by Xiaomi’s own founder Lei Jun. And the new company already has about 300 employees.

According to Xiaomi, in the past five months, the Xiaomi EV has already conducted extensive research on the user audience and made contacts with partners in the electric vehicle industry. As of now, the Xiaomi EV is still not ready to present any electric car or its prototype.

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Xiaomi recently announced the purchase of Deepmotion an autonomous driving company for $77.37 million. This purchase is meant “to enhance the technological competitiveness” of the Xiaomi EV business.

Xiaomi joins Tesla in Electric Vehicle battles

Tesla still holds the record of the world’s most popular electric car. According to the results of the second quarter, for the entire existence of this model, 1,031,588 cars were delivered; more than any other brand of electric vehicles.

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Now that Xiaomi has joined the electric vehicle race, will the new company be able to compete with Tesla? Well, Tesla has been in the game for a long time and it will take years of research and marketing for Xiaomi EV to compete.

How will the expanding into the electric vehicle business affect Xiaomi smartphone business? We don’t expect it to affect it that much as both companies are mutually exclusive.

Source | CNBC

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