With China EV launch, Xiaomi's 'Thor' takes on Elon Musk
Technology
With China EV launch, Xiaomi's 'Thor' takes on Elon Musk
BEIJING (Reuters) - He was called China's answer to Steve Jobs for taking Xiaomi (1810.HK), opens new tab from scrappy startup to an electronics giant known for its smartphones.
With the launch of a much-hyped and against-the-odds electric car, Lei Jun, Xiaomi's co-founder and CEO, is taking on Elon Musk with a strategy that takes a page from Tesla's (TSLA.O), opens new tab playbook.
Lei, 54, took the stage in Beijing on Thursday to unveil Xiaomi's SU7 car, a project three years in the making that has attracted a lot of attention but which, Lei has warned investors, will lose money.
During Thursday's two-hour event - a livestream millions of Chinese tuned in to watch - Lei made a jibe at Apple (AAPL.O), opens new tab for dropping its car project and declared Xiaomi's EV superior to Tesla's Model 3.
Fans dubbed the Xiaomi CEO "Thor" on social media, a play on his surname which means thunder in Chinese. Some commented that his outfit - a grey blazer over a black t-shirt - looked like something Musk would wear.
Already a household name in China, Lei's marketing strategy for his EV borrows directly from Musk, said Yale Zhang, managing director at Automotive Foresight.
"One person equals an entire marketing team," Zhang said. "With every word he says, the attention he attracts online is of a different magnitude."
Born in central China, Lei graduated from Wuhan University with a degree in computer science before working his way up to become chief executive of software firm Kingsoft.
The New York Auto Show opens to the public Friday, and it comes as the industry faces a tough decision.
In 2010, he co-founded Xiaomi. By 2014, the tech startup had a valuation of $46 billion.
The Beiijng-based company has grown with the popularity of its smartphones and home appliances, beloved in Chinese households for their affordability and sleek styling.
Last year, Xiaomi launched more expensive smartphones to compete with Apple's iPhone, but Lei's decision to sell a sporty EV that draws styling cues from Porsche (PSHG_p.DE), opens new tab will test the Chinese company's ability to shift to a new, premium market.
