Xiaomi saw its stock suffer a big blow this week. Reason: Photos and video of a burning Xiaomi SU7 sedan circulating on Chinese social media. In a blow to Chinese technology giant Xiaomi’s electric vehicle (EV) ambitions, the company’s shares plummeted over 5 per cent in Hong Kong trading on Monday, with an intraday drop as steep as 8.7 per cent—its worst since April. The sell-off was triggered by a fatal crash involving Xiaomi’s SU7 sedan in Chengdu, China, where the vehicle’s doors reportedly failed to open, trapping an occupant in a fiery wreck.
Xiaomi SU7 sedan crash
Disturbing images and videos circulating on Chinese social media showed the SU7 engulfed in flames after colliding with another sedan. Eyewitnesses described desperate attempts by bystanders to open the car’s doors to rescue the occupant, but their efforts were in vain. Emergency personnel eventually extinguished the blaze, but not before the tragedy claimed the life of a 31-year-old male driver, who police suspect was driving under the influence. The incident has raised questions about the safety features of Xiaomi’s SU7, a flagship electric vehicle meant to rival Tesla and BYD in China’s hyper-competitive EV market. As social media amplifies concerns over the door failure, Xiaomi faces mounting pressure to address potential design flaws. The crash not only dents the company’s reputation but also underscores the high stakes of its pivot from smartphones to smart cars.
