Xiaomi Corp. has confirmed that one of its SU7 electric vehicles was involved in an accident on an expressway in China, leading to the deaths of three individuals, according to local media reports. The incident is expected to heighten scrutiny regarding smart driving software utilized in many modern vehicles.
Following the accident, Xiaomi’s stock fell by as much as 6.1% in Hong Kong, continuing a decline of nearly 18% since the company recently raised approximately $5.5 billion through an equity sale intended to fund its expansion in the electric vehicle sector.
Shen Meng, director at Beijing-based investment bank Chanson & Co., commented that investors may have concerns about Xiaomi’s competitiveness and growth prospects following news of the accident. The completion of the share sale has also negatively impacted market sentiment.
Xiaomi stated in a post on its Weibo account that police promptly responded to the scene and are currently investigating the accident, which took place on an expressway in Anhui province on March 29. The company’s statement did not disclose any details regarding injuries or fatalities, and company representatives have not provided further comments.
According to an initial report from Xiaomi, the vehicle’s advanced driver assistance feature was engaged less than 20 minutes before the collision. It was noted that alerts were issued because the driver apparently was not holding the steering wheel. Shortly after another warning about road obstacles, the driver regained control, but the crash occurred seconds later.
Local media reported that following the impact, the vehicle was consumed by flames, leaving only parts such as the steel chassis intact.
The deployment of advanced driver assistance technology, which mandates drivers to maintain control of the steering wheel and remain vigilant about traffic conditions, has raised concerns about drivers relying too heavily on technology and losing focus on the road.
Tesla Inc. has similarly faced investigations in the U.S. regarding its partial-automation system, marketed as Full Self-Driving, after several crashes, including one fatal incident. Furthermore, Tesla has been involved in notable accidents in China, one of which occurred in 2021 when a vehicle owner protested at the Shanghai auto show claiming brake failure nearly caused a family member’s death.
Xiaomi, primarily known for its smartphones, has experienced immediate success with its electric vehicle venture, having recently increased its 2025 sales target to 350,000 units.
This report was initially featured on Fortune.com.
