Xiaomi’s EV involvement in deadly crash hits stock, raises questions on smart driving tech

Xiaomi Corporation confirmed that one of its SU7 electric vehicles was involved in a fatal accident on an expressway in Anhui province, China, on March 29. Three people died in the incident, which is likely to prompt heightened scrutiny over the smart driving software used in many modern vehicles, including Xiaomi's EVs.

The news led to a significant drop in Xiaomi's stock, which fell as much as 6.1 per cent in Hong Kong, continuing its downward trend since the company raised $5.5 billion in an equity sale last week to fund the expansion of its electric vehicle business. Since the share sale, Xiaomi’s stock has slumped nearly 18 per cent, Caliber.Az reports via foreign media.

“Investors might have concerns over Xiaomi’s competitiveness and growth outlook after reports of the car accident,” said Shen Meng, director at Beijing-based investment bank Chanson & Co. “The completion of the share sale has also weighed on sentiment.”

The incident occurred on an expressway in Anhui province, and police have already begun their investigation into the cause of the crash. Xiaomi issued a statement on its Weibo account confirming the accident but did not provide details on the number of fatalities or injuries, nor did representatives respond to further questions.

In its initial report, Xiaomi explained that the car’s advanced driver assistance system had been activated less than 20 minutes before the accident. The system had issued multiple alerts, warning that the driver was not holding the steering wheel. Seconds before the crash, another warning was issued about obstacles on the road, prompting the driver to take control of the wheel. However, the crash occurred shortly thereafter.

According to local media reports, the vehicle was engulfed in flames after the impact, leaving only some parts of the car, like the steel chassis, remaining in the aftermath.

The accident has reignited concerns about the safety of advanced driver assistance systems (ADAS), which still require drivers to keep their hands on the steering wheel and remain attentive to surrounding traffic. This incident follows a series of investigations in the US into Tesla’s Full Self-Driving system, which has been linked to several crashes, including fatal incidents.

Xiaomi, which has experienced rapid success in its EV business, had set a 2025 sales target of 350,000 units for its electric vehicles. The company is now facing increased scrutiny over the safety and reliability of its smart driving technologies.

By Vafa Guliyeva