Xiaomi’s electric car SU7 at a store in Yichang, Hubei Province, China, July 19, 2025.
Photo | Future Publishing | Getty Images
Chinese technology giant xiaomi The company’s shares fell more than 5% on Monday after reports that the doors of one of its electric cars would no longer open after a fire in China that killed one person.
Stocks fell as much as 8.7% in Hong Kong, the steepest decline since April, but losses were offset by images and videos of a Xiaomi SU7 sedan going up in flames in Chengdu that went viral on Chinese social media.
Video and witness accounts showed witnesses unsuccessfully trying to open the door of the burning car to rescue the occupants. Officials at the scene eventually used a fire extinguisher to extinguish the fire, according to local reports.
According to Chengdu police, the accident occurred after the SU7 collided with another sedan, resulting in the death of a 31-year-old male driver suspected of drunk driving.
xiaomi stock
Xiaomi, which makes consumer electronics, software and electric vehicles, did not immediately respond to CNBC’s request for comment.
The incident follows a fatal SU7 crash earlier this year, which raised questions about the vehicle’s smart driving capabilities and caused Xiaomi’s stock price to plummet.
The incident could also lead to increased scrutiny of electronic door handles, a design popularized by Tesla and now common on modern EVs.
Unlike mechanical door handles, electronic door handles rely on sensors and electricity, which can cause them to fail in the event of a fire or power outage.
China is considering banning such electric door handles to address safety risks associated with the feature, state media reported in late September.
Meanwhile, the National Highway Traffic Safety Administration has begun investigating approximately 174,000 Tesla Model Y vehicles after receiving reports of faulty door handles.
