Associated Incidents
A fatal crash involving a Xiaomi Corp. SU7 electric sedan on Monday has renewed concerns over electrically powered car-door handles, after bystanders were unable to open the doors and rescue the driver before it burst into flames.
The incident, which happened in the southwestern Chinese city of Chengdu, was suspected to have been caused by drunk driving and killed the motorist, police said in a statement.
Although authorities didn't specify the vehicle model, Chinese media reports and videos on platforms like Weibo suggest it was a Xiaomi SU7. Footage showed the car engulfed in flames after the crash, with bystanders attempting unsuccessfully to rescue the driver.
Xiaomi's shares dropped as much as 8.7% Monday, the most since April, before paring losses. The company didn't immediately respond to a request for comment.
Following a preliminary investigation, police said the driver --- identified as a 31-year-old man surnamed Deng --- was suspected of driving under the influence when he crashed into another car and veered over a planted median before the vehicle caught fire. Deng died at the scene, according to the statement.
The incident comes months after a fatality involving a Xiaomi SU7 EV on a Chinese expressway that sent the company's stock tumbling and raised questions about smart-driving systems used in newer vehicles and the safety of EV door handles.
The incident is likely to reinforce scrutiny of certain door handles in EVs that can't be opened normally after the car loses power. In September, the US National Highway Traffic Safety Administration launched a defect investigation into certain Tesla Model Y handles, while a top Chinese regulator is reportedly considering a ban on fully concealed handle designs.
Social media users on Weibo are questioning the electrically powered door handles on Xiaomi models and other EVs. While manual releases exist for emergencies, their placement varies across models and can be hard to locate for those unfamiliar with the vehicle, or inaccessible to first responders outside the car.
US Probe
The announcement of the probe in the US came days after a Bloomberg News investigation uncovered a series of incidents in which people were injured or died after they were unable to open doors when Teslas lost power, particularly after crashes.
Read More: Tesla Doors Can Trap People Desperate to Escape
While the latest incident may pressure Xiaomi's stock in the near term, the police statement suggesting driver error could help limit the decline, said Kenny Ng, a strategist at China Everbright Securities International.
"Adding to the pressure is the current softness in the overall market, which could weigh further on the stock in the near term," Ng said. He added that Xiaomi continues to make steady progress in EVs and smartphones, and its long-term fundamentals remain intact.
"If shares retreat toward the 250-day moving average, investors may find an attractive entry point," he said.
(Updates with social media debate on safety of door handle design in the eighth paragraph.)