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Shares in technology giant Xiaomi came under significant pressure from investors, falling more than eight per cent at the close of trading on the Hong Kong Stock Exchange. This negative trend was a direct reaction by the financial market to news of yet another fatal traffic accident involving the company's flagship electric car, the SU7 model. The tragic incident occurred on 13 October on the streets of Chengdu, where, according to preliminary data from law enforcement agencies, a car driven by an intoxicated driver lost control, collided with another vehicle and flew into oncoming traffic, after which the car was almost instantly engulfed in flames.
Witnesses to the incident made desperate attempts to help the trapped driver, but all their efforts were in vain due to the complete blockage of the door mechanisms. The car's electric door handles, which are designed to provide easy access to the passenger compartment in normal conditions, failed in an emergency situation, preventing the doors from being opened and the person from being evacuated from the burning vehicle. It was this technical aspect that provoked a wave of public outrage on Chinese social media, where users directly accused the company of neglecting basic passive safety principles in the design of the car.
Despite the lack of official comments and confirmation from the manufacturer itself, numerous local media reports and active discussions on the Weibo platform leave little doubt that the video footage from the scene shows a Xiaomi SU7 electric car. This road accident is already the second fatality involving this car model in the last six months, prompting industry analysts and ordinary consumers to talk about a systemic problem. The first fatal accident occurred on a motorway in April this year, killing three people and causing the company's market value to fall by five and a half per cent.
Financial advisors and stock market experts unanimously note that the current situation is dealing a huge blow to Xiaomi's reputation, which initially positioned itself as a high-tech manufacturer capable of competing on equal terms with recognised leaders in the automotive industry. Today, investors are showing well-founded nervousness, and the company's stock price has fallen below the psychologically important mark of fourteen dollars and twenty cents per share. The further price dynamics of Xiaomi shares will depend entirely on the efficiency and transparency of the company's management, which needs to provide comprehensive answers to critical questions regarding the actual level of safety of its electric vehicles, because in such a competitive market, consumer trust is a currency that is extremely easy to lose and almost impossible to regain quickly.