Hedge Funds Are Turning Against Xiaomi. But Should They?

According to a recent Bloomberg report, hedge funds have piled into short positions on Xiaomi just weeks before its Q3 earnings.

Goldman Sachs’ data shows short interest in Xiaomi surged 53% in one week

– A clear sign that institutional investors are losing confidence, at least in the short term.

Why?
• Slower-than-expected EV rollout
• Rising memory-chip costs squeezing margins
• A recent safety incident hurting sentiment
• Growing doubts about execution speed

It’s an ironic moment.

Just when Xiaomi is making its boldest push into EVs and AI — trying to prove it can be more than a smartphone company

– The market is betting against it.

But this isn’t the first time Xiaomi has faced skepticism.

Back in 2016, many doubted whether it could recover from its smartphone slump.

It did — with a renewed focus on quality, supply chain integration, and ecosystem power.

Now history might rhyme again.

Markets may be nervous, but for Xiaomi, this could be the test that defines whether its “Smart EV + AIoT” vision is real — or just hype.

✍️ But Short-term fear doesn’t always kill long-term conviction.

P.S: If you are interested in learning more about Xiaomi, check out my book, The Xiaomi Formula, which is available on Amazon.