How an electric car accident brought down Xiaomi shares
13 October 2025 15:57
Shares of the Chinese tech giant Xiaomi Corp. fell by almost 9% after a fatal accident involving a Xiaomi SU7 electric car. Bloomberg writes about it, "Komersant Ukrainian" reports.
The incident occurred on October 13 in Chengdu, Sichuan. According to the police, the driver was drunk when his car crashed into another vehicle, drove onto the dividing line and caught fire.
Eyewitnesses reported that the door handles did not work, so passers-by could not reach the driver. He died on the spot.
Market reaction
After the video of the accident appeared on Chinese media and Weibo, Xiaomi’s shares on the Hong Kong Stock Exchange fell by 8.7%, the largest decline since April 2025.
The company has not yet commented on the incident.
This is not the first accident
This is the second fatal incident involving Xiaomi SU7 electric cars.
- In April 2025, a similar accident on a Chinese highway killed three people.
- At that time, the company’s stock fell by 5.5%.
In both cases, social media actively discusses the safety of the car’s design and the operation of electronic door systems that have automatic locking on impact.
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What we know about the Xiaomi SU7 electric car
The Xiaomi SU7 electric car became the first production car of the company, which previously specialized in smartphones and consumer electronics.
- The presentation took place at the end of 2023.
- The car was positioned as a competitor to the Tesla Model 3.
- Demand in China was record-breaking: in June 2025, Xiaomi shares rose to a historic high.
- The company announced plans to enter the European market in 2027.
What was the impact of the incident?
Loss of investor confidence. A drop of almost 9% indicates serious market concerns about the reliability of the new line of electric vehicles.
Reputational risk. For Xiaomi, this is not just an accident, but a test of its readiness to be a player in the high-risk automotive sector.
Pressure on the technology sector. The incident may also affect other Chinese electric car manufacturers that are fighting for market share with Tesla and BYD.
What’s next
After two high-profile accidents , Chinese regulators may demand a safety inspection of Xiaomi’s electric cars.
If the company fails to prove the reliability of its systems, its plans to enter the European market in 2027 may be jeopardized.
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