Xiaomi shares fall sharply after fatal EV crash raises safety questions

Chengdu crash and stock drop

A serious SU7 crash in Chengdu on Oct. 13, 2025, sparked a public debate in China about the usability of flush and power-actuated door handles during emergencies, with police saying the incident was under investigation and suspected drunk driving was a factor.

Xiaomi Group’s stock price dropped 8.7 percent that day, marking its most significant single-day drop since April of the same year. The stock closed the trading day at HK$49.08 per share, down from an earlier daily high of $50.90.

Market reaction to safety concerns

The Xiaomi stock’s closing price on October 10, 2025, the last trading day before the crash, was HK$52.05 per share. The sharp drop in stock on October 13 was due to safety worries. The Hang Seng Tech Index, which includes Xiaomi, also fell by 3.5 percent on that day because of the overall safety debate.

The crash caused a public debate about the safety of electrically-operated door handles. Despite the price drop, the SU7’s maker of the SU7 was still up nearly 40 percent for 2025. This performance was better than the Hang Seng Automobile Index, which had risen by only about 34.5 percent during the same period.

Prior fatal SU7 accident data

A previous fatal crash involving a Xiaomi SU7 happened on March 29, 2025, on a highway in Anhui, China. This accident resulted in the death of three occupants in the vehicle. The crash was connected to the car’s Navigate on Autopilot (NOA) driver-assist system, which was actively controlling the vehicle at the time.

Logs from the March 2025 crash showed the car was driving at a 116 km/h speed when the NOA system gave an obstacle alert. The driver took control one second after the system issued the alert. The vehicle hit the roadside concrete barrier at approximately 97 km/h.

Driver-assist system log details

The log data from the March 29, 2025, crash showed specific timestamped events recorded by the car’s computers. An initial “Hands on wheel” alert was given at 22:36:48. This was followed by the critical “Obstacle ahead alert” at 22:44:24. The driver then physically took over the car’s controls at 22:44:25, based on the log’s recording.

The car crashed one second later at 22:44:26. The Autonomous Emergency Braking (AEB) system only slowed the car by about 19 km/h before the impact. The system did not entirely stop the car because its internal software logic treats stationary objects differently from moving cars.

Regulatory response to door handles

China’s Ministry of Industry and Information Technology (MIIT) released a draft safety regulation concerning car door handles. The deadline for all public comments on this proposed safety draft is November 22, 2025.

The MIIT draft, a set of proposed rules, requires that the exterior door handle have an operating space of at least 60 millimeters by 20 millimeters by 25 millimeters. Additionally, the draft rules state that doors on the side of the car that were not hit must be opened by external handles without needing any extra tools.

Regulatory response to smart driving

After the fatal SU7 crash in March 2025, the MIIT introduced new, tighter rules for assisted driving systems. In April 2025, the ministry banned car companies from using specific words like “smart” or “autonomous driving” in advertisements for their vehicles.

This ban was implemented to help prevent people from misusing Level 2 driving systems. New Chinese rules now demand a type-approval process for all software updates manufacturers send to cars. This rule applies to all over-the-air (OTA) driving software updates.

SU7’s sensor suite and LiDAR

The base model of the Xiaomi SU7 involved in the March 2025 crash had a standard sensor setup. This setup included 11 cameras placed around the vehicle. It also had 3 millimeter-wave radars and 12 ultrasonic sensors to detect objects. This version of the car did not come with a LiDAR sensor.

The more expensive models, the SU7 Pro and SU7 Max, have advanced safety features. These versions add a roof-mounted Hesai AT128 LiDAR sensor for better object detection. They also include a second Orin computing chip, which increases the car’s total compute power for intelligent driving to 508 TOPS.

International safety testing benchmarks

Safety Administration (NHTSA) states that the average driver takes 2.5 seconds to react to a warning that something is wrong. In the March 2025 SU7 crash, the driver only had about 0.8 seconds to react from the moment the alert was given until the impact. This reaction time was much faster than the average driver’s time.

Global testing groups are making their safety standards tougher. Euro NCAP’s latest AEB protocols include Car-to-Car Stationary scenarios and score vehicles based on how effectively they reduce residual speed in those tests.

Xiaomi stock performance in 2025

The Xiaomi stock was still doing well in 2025 despite the drops. The stock was up nearly 40 percent for the year. This performance was better than the Hang Seng Automobile Index, which had only increased by about 34.5 percent for the year. The reported total trading volume on October 13, 2025, was approximately 488.94 million shares.

This trading volume was much higher than the 168.45 million shares recorded on the previous trading day, October 10. The large spike in trading activity showed that many investors were buying or selling the stock after the accident news was reported.

Financial impact of the March crash

The first fatal accident on March 29, 2025, caused a significant financial hit for Xiaomi. Two days after the crash was reported, the company’s stock value dropped by more than 120 billion Hong Kong dollars. This decrease showed that investors were apprehensive about the safety of the new SU7 driver assistance technology.

This market loss was an estimated $15 billion USD at the time, calculated based on the change in market capitalization. The company’s share price on the Hong Kong Stock Exchange fell from HKD 51 per share on March 28, 2025.

Draft internal door handle rules

The MIIT rules also cover the internal door handles for safety and escape. The draft says internal handles with a mechanical release must be put in a clear spot for passengers to easily reach. A mechanical backup handle must also be included if a car has electric internal handles.

To make escaping faster, the rules require that the internal handles be clearly seen and placed within 300 mm (about 11.8 inches) of the door edge. The car must also have warning signs near the handle to show passengers how to use the escape method.

EV door handle design trend

Many electric car brands, like the Xiaomi SU7 and Tesla, use concealed door handles for better looks and airflow. The design appeal of these handles has made them very popular, even though they can be hard to use when the car’s power systems fail.

The MIIT created the new rules with the China Automotive Standardization Research Institute. They studied over 230 vehicles and crash-tested 20 different models. The main goal is to ensure door handles keep working even if the power is lost in an accident.

High-speed driving system alerts

The Navigate on Autopilot (NOA) system in the SU7 was on and driving at 116 km/h during the March 2025 crash. This NOA feature is a Level 2 system, which means the driver must always stay focused and ready to take control. The system first gave a “Mild-distraction warning” at 22:28:17.

Xiaomi had previously claimed that its AEB system could brake automatically at speeds up to 135 km/h for moving cars. The braking speed was up to 120 km/h for stationary objects at night. The system’s partial failure in the crash was due to the object being static.

Stock high and low points

On October 13, 2025, the day of the Chengdu crash, Xiaomi’s stock saw a wide range of prices. The high price for the day was $50.90 per share, and the low price was $47.50 per share. The closing price of $49.08 was closer to the day’s lowest price.

The highest price point for Xiaomi shares in the 52 weeks before the October crash was HKD 61.45. The lowest point in that same year was HKD 22.50 per share. The October 13 drop sent the stock to its lowest price since April 30, 2025.

Driver-assist software compliance

The March 2025 crash made it clear that all driver-assist systems in China are legally Level 2 or lower. This means that drivers are required by law to pay full attention and be prepared to take over from the car at any time during the drive.

Xiaomi’s data showed the driver of the SU7 had their hands off the wheel for some time, for eight minutes before the crash. The accident led to concerns that car companies are over-marketing “intelligent driving” and that users are misusing the Level 2 systems.

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Door handle emergency power

The MIIT safety draft also focuses on how electric door handles work during emergencies. The rules propose that the emergency power system for electric handles must work for more than 30 minutes after an accident. This long time is needed to help people escape, even if the car is burning.

Another proposed rule requires a bright fluorescent sign near the door handle. The sign must be seen within a 3-meter range and have a size of at least 5cm by 2cm. This is to help rescuers and trapped people quickly find the door handle in low-light conditions.

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This slideshow was made with AI assistance and human editing.