Xiaomi Corp (XIACY) just hit a milestone that many EV startups dream about: actual profitability. The Chinese tech giant reported its first-ever profit from its electric vehicle division when it released third-quarter earnings Tuesday, marking a remarkable achievement for a company that only entered the automotive space recently.

Breaking Into the Black

Xiaomi's EV arm generated a profit of RMB 700 million (roughly $98.4 million) in Q3, contributing to an overall profit surge of 80.9% to RMB 11.3 billion (approximately $1.5 billion). The company delivered 108,796 electric vehicles during the quarter, pushing cumulative deliveries past 260,000 units for the first three quarters of the year.

The expansion has been aggressive. Xiaomi now operates 402 smart EV sales centers spread across 119 cities in mainland China, creating a physical presence to support its digital-first reputation.

Tesla's Chinese Headwinds

Xiaomi's success story unfolds against a backdrop of challenges for Tesla Inc. (TSLA). The Elon Musk-led automaker saw its China sales drop 36% year-over-year in October, selling just 26,000 units in the country. Tesla's Shanghai Gigafactory moved 61,497 units of the Model Y SUV and Model 3 sedan (including exports) in October, down 9.9% from the prior year.

The October slump was particularly notable given Tesla's strong September performance, which marked the company's second-highest monthly sales total for the year. The volatility highlights the increasingly competitive nature of the Chinese EV market.

Xpeng Eyes Robotaxi Future

Meanwhile, Xpeng Inc. (XPEV) is making its own bold moves. During its third-quarter earnings call, the company announced plans to release three robotaxi models next year. CEO He Xiaopeng emphasized that the company's autonomous driving technology doesn't rely on LiDAR sensors, and pilot robotaxi operations are slated to begin in China in 2025.

The Chinese EV market continues to evolve rapidly, with domestic players like Xiaomi gaining ground while established giants face mounting pressure.