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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] HONG KONG, October 28, 2025 — Shares of Xiaomi Corp. (1810.HK) have slumped nearly 23% from their late September peak, weighed down by a series of electric vehicle (EV) accidents and renewed concerns over profitability. According to data from the Hong Kong Stock Exchange, Xiaomi’s stock closed at HK$45.80 on Monday, down 0.26% from the previous session and well below its September 25 high of HK$59.45, despite the broader Hang Seng Index gaining more than 1% on expectations of a U.S.–China leaders’ summit later this week.
The market’s biggest concern centers on a string of fatal EV accidents involving Xiaomi’s SU7 electric sedan, the company’s flagship model in its ambitious automotive expansion. According to local Chinese media outlets including The Paper (Pengpai News), a Xiaomi SU7 collided on a road in Chengdu, Sichuan Province at around 3:18 a.m. on October 13, resulting in the driver’s death.
News of the incident sent Xiaomi shares plunging as much as 8.7% intraday, before closing down 5.71% in Hong Kong trading. Earlier this year, another crash involving a vehicle reportedly operating in autonomous driving mode killed three passengers, further amplifying safety concerns surrounding Xiaomi’s EV technology.
The back-to-back accidents have reignited investor anxiety over the safety and reliability of Xiaomi’s electric vehicles, a segment that has been central to founder Lei Jun’s strategy to transform Xiaomi into a comprehensive smart mobility company. However, analysts note that the automaker’s EV division remains loss-making, raising questions about its ability to sustain large-scale production and compete against established players such as BYD, NIO, and Tesla in the Chinese market.
Despite strong demand in the broader EV sector, sentiment toward Xiaomi has turned cautious, as investors fear that the combination of mounting safety scrutiny and thin profit margins could weigh on its earnings outlook. Market watchers say a faster-than-expected resolution of the safety investigations or stronger EV delivery data in the fourth quarter could help stabilize investor confidence.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
