Xiaomi, is primed to launch the next salvo in China's car wars. The smartphone-to-autos maker reported, opens new tab record first-quarter revenue on Tuesday, while adjusted net income rose by two-thirds to $1.5 billion. A 10% profit margin and deep pockets mean it can afford to be more ambitious. That bodes ill for Tesla, Xpeng , and other rivals.

小米正蓄势待发，准备在中国汽车市场的竞争中发动下一轮攻势。 这家从智能手机拓展到汽车制造的企业于周二公布了创纪录的第一季度营收， 同时调整后净收入增长了三分之二，达到15亿美元。 10%的利润率以及雄厚的资金实力意味着它有能力追求更宏大的目标。 这对特斯拉、小鹏汽车以及其他竞争对手而言可不是个好兆头。

At first glance, founder Lei Jun's fast-paced strategy looks hard to sustain. His fledgling electric-car business is growing rapidly, but has yet to turn a net profit. At the same time, he is investing heavily in new technology and plans to splurge $7 billion on chips over the next decade.

乍一看，创始人雷军的快节奏战略似乎难以持续。 他新成立的电动汽车业务虽增长迅速，但尚未实现净利润。 与此同时，他还在大力投资新技术，并计划在未来十年内斥资70亿美元用于芯片研发。

The road ahead is treacherous. Xiaomi is rebuilding its reputation after three people died in a crash involving an SU7 car that had engaged its autopilot mode. Its vehicle sales fell in April as competitors took the opportunity to tout their own safety credentials. Rivals are also accelerating a brutal price war: over the weekend, BYD announced a fresh round of incentives, effectively reducing the price of its cheapest model to less than $8,000 - a roughly 20% cut per Bloomberg.

前路充满坎坷。 小米在三名人员因一辆开启自动驾驶模式的SU7汽车发生事故而死亡后，正努力重塑声誉。 4月，其汽车销量出现下滑，竞争对手趁机大肆宣扬自身的安全资质。 竞争对手们还在加速一场残酷的价格战：上周末，比亚迪宣布推出新一轮激励措施， 实际上将其最便宜车型的价格降至不到8000美元——据彭博社报道，降幅约为20%。

Yet Xiaomi is not necessarily struggling – if anything, it is charging into the fray. Its debut sport utility vehicle, launched last week, is packed with features that set it apart from similar models, such as having lidar as standard. Analysts anticipate a price point around 250,000 yuan, or some $35,000, comparable to Tesla's Model Y despite additional specs and costs.

然而，小米并非一定在苦苦挣扎——如果有的话，它正积极投身这场竞争。 上周推出的首款运动型多用途车配备了诸多特色功能，使其与类似车型区别开来，例如标配激光雷达。 分析师预计其售价约为25万元人民币，即约3.5万美元，尽管配置和成本更高，但与特斯拉的Model Y不相上下。

Lei has more leeway to take expensive risks because, unlike most EV startups and legacy automakers, he has a robust core business. Smartphones and appliances made up more than 80% of sales last quarter, and premium products lifted profits: the gross margin for their electronics and lifestyle business rose 5.4 percentage points compared to a year earlier. So investors can more readily tolerate a money-losing auto unit.

雷军有更多余地去承担高昂的风险，因为与大多数电动汽车初创企业和传统汽车制造商不同，他拥有稳健的核心业务。 上季度，智能手机和家电产品的销售额占比超过80%，高端产品提升了利润： 其电子和生活方式业务的毛利率同比提高了5.4个百分点。 因此，投资者更能容忍汽车业务亏损的情况。

That is boosting Xiaomi's financial firepower, too. Annual free cash flow has topped $4 billion for two years straight. After raising a further $5.5 billion in a Hong Kong share sale earlier this year, it ended March with more than 100 billion yuan in net cash, or some $15 billion, according to Visible Alpha. With the share price near an all-time high, Xiaomi could consider raising funds again soon, reckons Morningstar analyst Dan Baker.

这也增强了小米的财务实力。 年度自由现金流已连续两年超过40亿美元。 今年早些时候，小米在香港通过股票发行进一步筹集了55亿美元资金，截至3月底，其净现金超过1000亿元人民币， 即约150亿美元，根据Visible Alpha的数据。 晨星分析师丹·贝克认为，随着股价接近历史高位，小米可能很快会考虑再次筹集资金。