Xiaomi's stock dropped 5.5% after the Chinese electronics and electric vehicle maker confirmed a fatal crash involving its SU7 electric sedan, raising fresh concerns about the company's autonomous driving system. The crash, which occurred on March 29 in Tongling, Anhui province, killed the driver and two passengers, according to multiple Chinese media outlets citing sources close to the victims.
The incident marks the first major accident involving the SU7, which has become a key part of Xiaomi's push into the electric vehicle market. The SU7 has outsold Tesla's Model 3 in China on a monthly basis since December.
Xiaomi said the vehicle involved was the standard version of the SU7, which lacks the more advanced LiDAR-equipped autonomous features found on its higher-end Pro and Max models. According to the company, the car was operating in Navigate on Autopilot (NOA) mode at 116 kilometers per hour (about 72 mph) when it issued a risk warning and the driver took over manual control.
XIAOMI EV ERUPTS IN FLAMES AFTER DEADLY CRASH
A Xiaomi SU7 electric vehicle was involved in a deadly crash on a Chinese expressway, with local media reporting 3 fatalities.
Xiaomi confirmed the vehicle’s driver assistance system had been active less than 20 minutes before… https://t.co/cQxOcgj634 pic.twitter.com/1srmPlKmw9 — Mario Nawfal (@MarioNawfal) April 1, 2025
The crash occurred seconds later, with system data showing that the vehicle collided with a cement guardrail at around 97 kilometers per hour. Images and video circulating on Chinese social media showed the front of the vehicle heavily damaged and engulfed in flames. Xiaomi has not confirmed whether the fire contributed to the fatalities.
In a statement posted on its official Weibo account, Xiaomi said it "deeply regrets the accident" and confirmed it is "actively cooperating with the police." The company submitted vehicle data and system logs to local authorities on March 31.
Reports indicate that the section of the road where the crash occurred was under construction, and that the vehicle had shifted to an alternate lane before issuing its obstacle warnings. The company's data shows that NOA was activated at 22:27:17 and the crash took place at 22:44:28.
The incident comes at a time when Xiaomi is expanding rapidly into the EV sector after years of focusing on smartphones and smart devices. Its EV unit, Xiaomi EV, reported more than 29,000 vehicle deliveries in March, marking its sixth straight month of delivering over 20,000 units. Despite the accident, demand for the SU7 remains high, with delivery wait times currently stretching up to 40 weeks.
Xiaomi's stock had risen 34.8% year to date prior to the incident. The 5.5% decline Wednesday sharply contrasted with a modest 0.2% gain in the Hang Seng Tech Index.
