Key Points
- A fatal crash in China involving a suspected Xiaomi SU7 EV has sent the company’s stock tumbling.
- Police say the driver, who died in the fiery crash, is suspected of being drunk. This is the second fatal crash involving a Xiaomi SU7 in recent months.
- The incident is raising new concerns about the safety of electronic door handles on EVs.
- The police’s finding of driver error could help limit the damage to Xiaomi’s brand.
A fatal car crash in China early Monday involving what is believed to be a Xiaomi SU7 electric sedan sent the company’s stock tumbling. The driver of the car died after it crashed and caught fire, and police say they suspect he was driving under the influence.
Videos of the aftermath, which circulated widely on Chinese social media, showed the car engulfed in flames. Bystanders reportedly tried to rescue the driver but were unable to get to him.
Xiaomi’s stock dropped as much as 8.7% on the news, its biggest one-day fall since April.
This is the second fatal crash involving a Xiaomi SU7 in recent months, raising questions about the safety of the company’s new and popular electric vehicles. However, the police’s preliminary finding of drunk driving in this case could help limit the long-term damage to the company’s reputation.
“The police statement suggesting driver error could help limit the decline,” said one analyst.
The incident is also likely to bring renewed scrutiny to a controversial feature of many new EVs: electronically-operated door handles. Like many Teslas, the Xiaomi SU7 has flush handles on the door, which may not work if the car loses power after a crash. This has been a growing safety concern, with several incidents where people were unable to escape their vehicles after an accident.
