Xiaomi shares sink most since April after fatal EV crash raises door safety concerns

Shares of Xiaomi, the Chinese technology powerhouse, experienced a dramatic decline of over 5% on Monday after alarming reports surfaced regarding the safety of its electric vehicle doors. This turmoil was ignited by a tragic crash in Chengdu that resulted in a fatality, where a Xiaomi SU7 sedan's doors reportedly failed to open during a fire, trapping the driver inside. At one point, the stock plummeted by as much as 8.7% in Hong Kong, marking the company's most significant drop since April. The incident drew widespread attention on social media, with videos and eyewitness accounts depicting frantic bystanders attempting to rescue the driver from the engulfed vehicle. Firefighters eventually extinguished the blaze, but not before the situation escalated. According to local authorities, the crash involved a collision with another vehicle, and the deceased driver, a 31-year-old male, was suspected of being under the influence of alcohol at the time of the accident. Xiaomi, which is renowned for its consumer electronics, software solutions, and electric vehicles, has yet to respond to requests for comment regarding the incident. This unfortunate event follows an earlier deadly crash involving the same model, which had already raised concerns about the SU7’s automated driving technologies and contributed to a decline in Xiaomi’s stock. The recent mishap may lead to increased scrutiny of electronic door handles, a feature that has become popular in modern electric vehicles, including those manufactured by Tesla. Unlike traditional mechanical door handles, these electronic versions are dependent on sensors and electricity, which can lead to failures in emergencies such as fires or power outages. In response to the rising safety concerns, Chinese authorities are contemplating a ban on electronic door handles, as reported by state-backed media in late September. Additionally, in the U.S., the National Highway Traffic Safety Administration has begun investigating around 174,000 Tesla Model Y vehicles due to similar reports of door handle malfunctions.