Chinese smartphone maker Xiaomi officially announces to make electric cars today, according to the latest announcement from the HKSE.

Just a short while ago, Xiaomi plans to invest about 100 billion yuan ($15 billion) to produce electric vehicles over the next three years, a person familiar with the matter said. And it will launch the largest-ever reform, entering into the booming Chinese electric vehicle market.

The person also said Xiaomi will invest about 60% of the amount envisioned, and plans to finance the rest. The smartphone maker has less than 100 billion yuan in cash and cash equivalents as of the end of 2020.

Xiaomi will outsource car assembly to contract manufacturers, the same model used for its smartphones, the person with knowledge of the matter said.

Xiaomi’s response to the news has been a flurry of surprise today. At first, it said “No comment.” Immediately after, Xiaomi Group releases a voluntary announcement on the Hong Kong Stock Exchange (HKSE), which is on the matter of electric vehicle manufacturing.

The HKSE announcement shows that Xiaomi Group will soon set up a wholly-owned subsidiary for its electric vehicle business, with an initial investment of 10 billion yuan (about $1.523 billion) and an expected investment of $10 billion over the next 10 years. Lei Jun, CEO of Xiaomi Group, will be the CEO of the electric vehicle business.

In fact, there have been various rumors about Xiaomi’s plan to make cars. Now, it's time for these rumors to stop.