Xiaomi Stock Plunges After Deadly EV Crash Raises Safety Concerns Over SU7 Sedan
Xiaomi shares fell more than 5% on Monday, their steepest decline since April, after reports emerged of a fatal crash involving the company’s SU7 electric vehicle in Chengdu, China.
The incident, which killed a 31-year-old male driver suspected of drunk driving, sparked a wave of safety concerns after video footage showed bystanders unsuccessfully trying to open the car’s doors as flames engulfed the vehicle. Images of the burning sedan quickly spread across Chinese social media, fueling public debate over EV safety.
The stock initially dropped as much as 8.7% in Hong Kong before paring some losses.
This marks the second fatal accident tied to the Xiaomi SU7 this year, intensifying scrutiny over the model’s smart driving features and design choices. In particular, regulators and consumers are questioning the risks of electronic door handles, which depend on sensors and power rather than traditional mechanical systems.
Such handles—popularized by Tesla and adopted by many modern EV makers—have come under fire for potential failures during fires or power outages. Chinese state-backed media recently reported that officials are weighing a possible ban on electronic door handles to improve vehicle safety.
In the U.S., the National Highway Traffic Safety Administration (NHTSA) is also investigating reports of similar door handle malfunctions in more than 174,000 Tesla Model Y vehicles, highlighting growing global scrutiny over the feature.
