Driver dies in Xiaomi EV fire, shares dive over 8%

A fire in a Xiaomi electric vehicle (EV) in Chengdu killed the driver early on Monday, shaking confidence in the company’s car business and sending its stock tumbling. The crash has raised urgent questions about EV safety for owners and investors.

At about 3 a.m. local time, the driver swerved left to avoid a car turning at a crosswalk, hit a central divider, then rolled into the opposite lane, according to Chinese media such as Pengpai. The collision triggered a fire. Bystanders tried to open the doors or break windows to rescue the occupant but failed. Firefighters later cut open the doors. The 31-year-old man inside died.

Xiaomi shares in Hong Kong plunged as much as 8.7% during the session. They pared losses later and closed down 5.71% at HKD 49.08.

Local authorities said the driver was speeding and may have been drunk at the time. A Chengdu traffic bureau statement said, “Inspection results indicate the driver is suspected of drunk driving, and the circumstances of the accident are under investigation.”

The car involved was a Xiaomi SU7, the company’s first EV model launched less than two years ago. The SU7 was also involved in a separate fatal accident in March, in which all three occupants died after the vehicle crashed and caught fire. That earlier crash drew scrutiny of its autonomous driving functions and the safety of electronic door systems.

Xiaomi has said it is cooperating fully with investigators. The accident could intensify pressure on regulators and automakers to enforce stricter EV safety rules and to revisit design features such as door mechanisms and assisted driving systems.