Xiaomi’s ambitious foray into the electric vehicle market faces a new reputational test after a fatal crash in China led to a sharp drop in its shares, despite authorities attributing the incident to driver intoxication and extreme speeding.
The incident occurred in Chengdu on the night of October 12 to 13, involving a Xiaomi SU7 Ultra. The 31-year-old driver died after being trapped inside the vehicle as it caught fire following the collision.
Xiaomi shares tumbled nearly 10% after news of the accident, marking their lowest value in five months. This reaction highlights market concerns regarding the smartphone giant’s rapid expansion into the highly competitive automotive sector.
Bystanders reportedly attempted to rescue the driver but were unable to open the car’s doors, which remained locked. This detail sparked public discussion, echoing a previous SU7 incident in March where the vehicle’s electric door handles had been questioned.
However, photographs of the wreckage from the recent Chengdu crash indicate severe deformation of the doors due to the impact. This suggests mechanical damage, rather than an electrical system failure, prevented the doors from opening.
Authorities reported the driver was intoxicated and traveling between 100 and 150 kilometers per hour, significantly above the legal limit. After erratic driving, the vehicle collided with another, crossed into the opposing lane, and then burst into flames.
A video circulating online, which captured the aftermath of the crash, intensified scrutiny.
【速報】中国でXiaomi SU7 EVが衝突事故。火災発生後、電力喪失でドアがロックされ、運転手が脱出できず死亡。救助失敗。Xiaomi株価は9%下落。EVの電子ドア安全性が再燃した。pic.twitter.com/hK1neiKDYj
— NEW【世界ニュース】 (@sutoroveli_news) October 14, 2025
Xiaomi launched its first electric vehicle, the SU7, less than two years after announcing its entry into the market. The model achieved significant initial success in China, a country already dominated by several established EV manufacturers.