Xiaomi shares tumble after fatal crash of SU7 electric car in Chengdu sparks safety concerns

Shares of Xiaomi Corp fell sharply on Monday after reports emerged that a Xiaomi SU7 electric sedan had caught fire following a high-speed crash in Chengdu. The crash killed the driver and raised fresh questions over the safety of EV door handles.

The stock dropped as much as 8.7 percent to HK$47.5, its lowest level since April 30, marking its biggest one-day decline since early April. It was also the biggest loser on the Hang Seng Index and the Hang Seng Tech Index, which fell 2.7 percent and 3.5 percent respectively. The stock has now declined for three consecutive sessions.

Fatal crash and fire

The accident occurred in the early hours of Monday on Tianfu Avenue, a main thoroughfare in the southwestern city of Chengdu. According to a report by Chinese financial news outlet Yicai, dashcam footage showed a vehicle -- suspected to be a Xiaomi SU7 Ultra -- overtaking another car travelling at around 104 km/h before colliding and bursting into flames.

Bystanders reportedly tried to pry open the vehicle’s doors and windows but failed to gain entry before the fire engulfed the car. Police later confirmed that the 31-year-old driver, surnamed Deng, died at the scene and was suspected of driving under the influence.

While authorities did not confirm the vehicle model, videos circulating on social media platform Weibo strongly suggest it was a Xiaomi SU7. Reuters reported that Xiaomi had not immediately responded to a request for comment.

Safety debate reignited

The crash has rekindled debate about the electrically powered, retractable door handles found on many new-generation electric cars. Critics argue that such designs can become inaccessible when a vehicle loses power, hampering rescue efforts.

In September, the US National Highway Traffic Safety Administration opened a defect investigation into certain Tesla Model Y door handles, while Chinese regulators have reportedly been examining whether to ban fully concealed handle designs.

Social-media users have called attention to the difficulty of locating manual release mechanisms in emergencies -- often hidden inside the car and unfamiliar to bystanders or first responders.

The tragedy comes only months after another fatal incident involving a Xiaomi SU7 on a Chinese expressway, which had also raised concerns over EV safety systems.

Stock performance

Despite Monday’s plunge, Xiaomi shares remain up nearly 40 percent so far in 2025, outperforming the Hang Seng Automobile Index, which has risen about 34.5 percent this year. The stock traded at HK$48.90 on Tuesday, down 0.37 percent for the day and about 6 percent lower since Friday’s close.

• With inputs from Reuters, Bloomberg