Xiaomi SU7 crash sparks investor fears, sending stock down 9%

Tragic Accident Casts Shadow Over Xiaomi's Electric Vehicle Ambitions

A devastating accident involving the Xiaomi SU7 electric sedan, resulting in a fatality and subsequent fire, has sent shockwaves through the automotive world and, more directly, the financial markets. The incident, which occurred in Chengdu, southwestern China, not only represents a profound human tragedy but also triggered a significant downturn in Xiaomi's stock value, with shares plummeting by 8.7% on Monday, October 13th. This marks the steepest decline for the tech giant's stock since April, underscoring the gravity of the situation.

Echoes of Past Incidents and Safety Concerns

Tragically, similar to concerning instances with the Tesla Cybertruck, reports suggest that neither the driver nor bystanders were able to readily access the vehicle's interior once it became engulfed in flames. This alarming detail raises crucial questions about vehicle safety protocols and emergency egress, particularly in electric vehicles. The immediate inability to open doors in a fiery scenario is a chilling reminder that, beyond ease of access, doors should ideally possess mechanisms for automatic release during critical emergencies, ensuring the swift evacuation of occupants.

Official Investigations and Driver Accountability

According to a statement from the police, corroborated by Bloomberg, the accident was likely precipitated by a driver operating the vehicle under the influence of alcohol. The 31-year-old male, identified by the surname Deng, is the individual who tragically lost his life. Preliminary investigations indicate that Deng's SU7 collided with another vehicle before veering onto the central reservation, leading to the catastrophic fire. While the official police report does not explicitly name the model, compelling evidence from Chinese media outlets and viral videos on Weibo strongly point towards the Xiaomi SU7 being involved.

A Pattern of Concern and Market Volatility

This is not the first time the Xiaomi SU7 has been linked to a fatal incident. Several months prior, another fatality occurred on a high-speed expressway involving the same model. That earlier event also led to a noticeable dip in Xiaomi's stock price and ignited public discourse surrounding the reliability of intelligent driving systems and the design of door handles on Xiaomi and other electric vehicles. User feedback on platforms like Weibo has echoed concerns, noting that, much like with certain Tesla models, the door handles on the SU7 can be challenging to operate for individuals unfamiliar with their specific mechanics, especially under duress.