Xiaomi stocks experienced a decline on Tuesday after a significant incident in China involving an SU7 electric vehicle. The mishap took place on the Deshang Expressway on Saturday night, with local media reporting three fatalities. The reason behind the accident remains unclear.
Following the announcement by Xiaomi that one of its SU7 electric cars was involved in a major traffic collision on Saturday night, the stock prices of the Chinese tech company plummeted. Shares of Xiaomi on the Hong Kong stock exchange hit a six-week low after the news was shared on Weibo. Xiaomi concluded the day 5.5% lower at 46.50 Hong Kong dollars per share on Tuesday, contrasting with the 0.4% gains in the Hang Seng Index.
Despite the recent incident, Xiaomi's stock value remains 35% higher this year, predominantly driven by the increasing interest in Chinese tech stocks due to the popularity of the Chinese AI technology DeepSeek.
Xiaomi disclosed via Weibo that the accident happened on the Deshang Expressway in eastern China, with preliminary data indicating that the vehicle was operating in the Navigate on Autopilot (NOA) mode, traveling at 116 kilometers per hour (72 miles per hour) before colliding with a cement barrier when a human driver took control. The NOA system alerted the driver to hold the steering wheel after more than nine minutes of operation.
Reports revealed that three individuals lost their lives in the tragic incident, prompting discussions across social media platforms like Weibo. Xiaomi has pledged to collaborate with law enforcement in their inquiries into the accident.
The crash represents a potential setback for Xiaomi, which has been actively involved in the EV sector. The company had initially targeted to sell 100,000 SU7s by the end of the year, a goal they surpassed in November. Subsequently, Xiaomi revised its 2025 sales projection to 350,000 units, an increase from the prior target of 300,000 units.
Ford's CEO, Jim Farley, praised the Xiaomi SU 7 last October, commending it as a "fantastic" car.