Tesla might have to watch out for low cost Xiaomi entering the electric car market

Tesla watch out, Xiaomi also wants a pie of the Electric car market..Xiaomi Corp. plans to invest about $10 billion over the next decade to manufacture electric cars, embarking on its biggest-ever overhaul to enter China’s booming EV market.

Billionaire co-founder Lei Jun will lead a new standalone division that will invest an initial 10 billion yuan ($1.5 billion) on smart vehicle manufacturing, the company said in an exchange filing.The Chinese smartphone maker joins tech giants from Apple Inc. to Huawei Technologies Co. in targeting the vehicle industry, betting future cars will grow increasingly autonomous and connected. Depending on progress, Xiaomi could end up investing a total 100 billion yuan in the project in as little as three years, taking external financing into account, a person familiar with the matter told Bloomberg News before the announcement. The company will contribute about 60% of the envisioned sum and plans to raise the rest of the funds, said the person, who asked not be identified because the plans are private.

Source Bloomberg