Xiaomi's $10B EV Aspirations Hit By Regulatory Brakes: Report

Xiaomi Corp's XIACY $10 billion electric vehicle project in China struggled for regulatory clearance, Bloomberg reports.
The smartphone giant failed to cut a breakthrough despite months of conversations with the National Development and Reform Commission about the licensing.
Xiaomi's EV division has over 1,000 employees and looks to commercialize its first vehicle in 2024.
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Xiaomi acquired land in the southeastern suburbs of Beijing for an assembly plant and bought EV startups.
China's electric car market is already crowded, with big shots like Tesla Inc TSLA, NIO Inc NIO, and Warren Buffett-backed BYD Co, Ltd BYDDY.
Baidu, Inc BIDU to Huawei Technologies Co also weighed opportunities in autonomous driving, smart cockpit, and power management technologies.
Xiaomi opted for new growth areas after clocking its first sales decline on record in the first quarter.
China has cracked down upon the EV sector following a spate of high-profile bankruptcies.
Tesla's China-made EV deliveries climbed 145% in June as BYD led the EV players.
China explored measures to spur demand, including extending a tax break for EVs, building more charging stations, and encouraging lower charging fees.
Price Action: XIACY shares traded higher by 1.35% at $8.24 in the premarket on the last check Friday.