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By comparing Apple, Tesla, and BYD, Morgan Stanley explained the logic behind Xiaomi's valuation potentially doubling within five years.
Morgan Stanley believes that, referencing the historical data of Tesla and BYD, as Xiaomi's electric vehicle sales explode over the next two years (with a CAGR of over 100%), the company's electric vehicle Business P/S is also expected to expand rapidly, reaching 2-3 times by 2026. Furthermore, with the model of "Smart Phone + AIoT + Internet services", Xiaomi is expected to replicate Apple's success, with Morgan Stanley predicting that this Business will reach a PE of 20-25 times by 2025.
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