Lei Jun, Xiaomi's CEO, has shifted his focus from investing through Shunwei Capital to directly competing with former investments such as Nio and Xpeng (NYSE: XPEV ) Motors. This pivot is a significant move according to Gasgoo Auto Research Institute. Despite Xiaomi's impressive third-quarter performance, which saw a net income surge by 183% attributed to lower component costs and improved operational efficiency, investor concerns over the substantial costs associated with entering the smart car industry contributed to a stock price decline of nearly 5% on Tuesday.