Xiaomi's CEO says 140 autonomous vehicles are being tested in China

Xiaomi announced its plans to venture into electric vehicles last year, and CEO Lei Jun recently said the company has 500 employees developing autonomous driving technologies for its EVs. He said the automaker has already invested $490 million in self-driving technology.

The news comes less than two weeks after reports that Xiaomi is having trouble getting regulatory approval for its car project.

Xiaomi has committed $10 billion to automotive and plans to launch its first EV in 2024.

New Chinese automakers must submit financial and technological documents. This process takes months, and the government sometimes rejects applications. Xiaomi's car project hasn't received the necessary approvals, but that hasn't slowed it down.

Xiaomi has started building its first auto factory in Beijing.

Bloomberg News reported that Xiaomi's difficulty obtaining a carmaking license in China could hinder its EV development and delay its 2024 debut.

The delay could prolong the drag from heavy R&D and fixed asset investments and weigh on its market share as China's EV segment becomes crowded with fast-growing rivals Nio, Xpeng, and Li Auto.