A fatal crash involving a Xiaomi SU7 EV in eastern China left three people dead, triggering an investigation and a decline in the automaker’s stock. The car, traveling at 72 mph, crashed into a cement pole and caught fire, with unconfirmed reports suggesting that the doors failed to unlock after impact.
Following the incident, Xiaomi shares fell by 5.5% in Hong Kong and 6.7% in U.S. after-hours trading, just days after the company raised $5.5 billion to expand its EV division.
Xiaomi’s founder, Lei Jun, stated that the company is fully cooperating with authorities and vowed not to evade responsibility for the accident.
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A fatal crash in China involving a Xiaomi electric vehicle (EV) has left three people dead, prompting an investigation by authorities and a significant drop in the company’s stock. The incident occurred March 29 on the Dezhou-Shangrao Expressway in the eastern part of the country.
How did the crash occur?
According to the automaker, the vehicle involved was a Xiaomi SU7 equipped with its advanced driver-assistance system, Navigate on Autopilot, which had been engaged at the time of the accident. The system reportedly issued a risk warning regarding obstacles ahead, but the driver was unable to prevent the collision. The car was traveling at approximately 72 mph when it struck a cement pole, which led to a fire.
Reports suggest that the car’s door failed to unlock after the crash, but Xiaomi has not been able to confirm these claims as it currently does not have access to the vehicle.
What does this accident mean for Xiaomi?
Following the deadly accident, Xiaomi’s stock took a hit, with shares dropping by 5.5% during Hong Kong trading and 6.7% in U.S. after-hours trading. Just hours before news of the crash broke internationally, S&P Global increased the company’s investor safety rating from “BBB-” to “BBB,” citing its promising prospects in the electric vehicle sector.
This also comes just one week after the company successfully raised $5.5 billion to support its rapidly growing electric vehicle division. Despite only launching its first electric model in 2024, the company outsold American automakers Ford and General Motors in the EV sector last year.
What happens next?
In a statement, Xiaomi’s founder, Lei Jun, said the company is fully cooperating with authorities and that he is “heavy-hearted” over the loss of life. He also committed to addressing public concerns and vowed not to avoid responsibility for the incident, saying, “No matter what happens, Xiaomi will not evade.”
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