Chinese electronics giant Xiaomi Corp reported a 30.5% increase in third-quarter revenue, driven by strong demand for its first electric vehicle, the SU7 sedan. Known for its smartphones and consumer electronics, Xiaomi launched the car in March, entering China’s competitive EV market with a strikingly affordable price—starting at under $30,000 for the base model, which is around $4,000 less than the base price of Tesla Inc.’s Model 3 in the country.

The SU7, which has the same driving range as a traditional gas-powered car, is available for preorder starting today and will start shipping in November. Xiaomi, which has just one EV factory it built, expects to produce 260,000 units this year, putting it on track to hit its target of 100,000 deliveries by the end of 2025.

However, the company is prioritizing its nascent EV business at the expense of profits and has signed a contract that will take time before it breaks even. Billionaire founder Lei Jun has said he wants the company to become one of the world’s biggest carmakers within a decade.

The results may give investors hope that the company’s efforts are paying off and will eventually reap rewards from its investment in the auto industry. However, it also underscores how much more work is required to make Xiaomi a force in the carmaking industry, where margins are typically much lower than those seen in consumer electronics. CATL, the world’s largest battery maker, is working to change that by lowering production costs and offering models that cost less than pure EVs.