Xiaomi Corp. has announced its fastest revenue growth rate since 2021. This was driven by the success of the company’s first electric car sales and the recovery of the global smartphone market, Bloomberg reports.

In the second quarter of 2024, Xiaomi’s revenue increased by 32% to 88.9 billion yuan ($12.5 billion), which was higher than analysts’ forecasts. The electric vehicle division generated approximately 6.2 billion yuan in revenue.

Xiaomi’s net profit in the June quarter also exceeded experts’ expectations and reached 5.1 billion yuan.

The better-than-expected results may be fueling investor hope that Xiaomi has discovered a new source of growth. The company’s founder, Lei Jun, has pledged to invest $10 billion in car manufacturing, a bold bet to replicate the success it has had in smartphone production.

Xiaomi launched its first electric car in March in a market crowded with much bigger players, from Tesla to BYD. The billionaire said that the company intends to become one of the five largest automakers in 15-20 years.

Xiaomi shares are up about 16% since the company started selling electric vehicles in late March. The Beijing-based company raised its delivery targets for its SU7 model shortly after the car’s debut.

In May, Xiaomi raised its car delivery plan from 100 thousand to 120 thousand this year. Now the company expects deliveries to continue to accelerate in the coming months.

The company is currently developing new models to expand its electric vehicle lineup to better compete with industry leaders. In the near future, the company plans to launch a sports crossover similar to the Tesla Model Y, which will enter the market in 2025.