Chinese smartphone-turned-electric vehicle maker Xiaomi (XIACF) has come under scrutiny after a tragic accident involving its SU7 electric vehicle. The crash, which occurred on an expressway in China, reportedly left three people dead. While investigations are ongoing, early reports suggest the car’s Navigate on Autopilot system was engaged less than 20 minutes before the collision. Following the news, Xiaomi’s stock tumbled over 5% in yesterday’s trading hours.
CEO Responds, Investigation Underway
Xiaomi CEO Lei Jun expressed condolences and assured full cooperation with authorities. The company has handed over vehicle data to investigators.
According to Xiaomi’s report, the driver assistance system issued warnings before the crash, urging the driver to regain control. Seconds later, the vehicle hit a concrete barrier and burst into flames.
Despite the setback, Xiaomi remains ambitious in its EV expansion, recently raising its 2025 electric vehicle sales target to 350,000 from 300,000. However, However, the accident adds to growing concerns over the safety of semi-automated driving technology, potentially leading to stricter regulations in China.
EV Safety Under the Microscope
Xiaomi isn’t the only automaker facing scrutiny over smart driving systems. Tesla (TSLA) has been investigated many times in the U.S. for crashes linked to its Full Self-Driving (FSD) and Autopilot systems. Some crashes have been deadly, fueling debates over its safety on public roads.
In China, Nio (NIO) has also faced safety issues. Meanwhile, Xpeng (XPEV) promotes its smart driving as a Tesla rival, but concerns remain. In 2023, an Xpeng EV lost control while parking and crashed. Regulators warn that these systems must not give drivers a false sense of security.
With more EV crashes linked to driver-assist technology, experts worry that partial automation isn’t as safe as advertised. Xiaomi’s accident only adds to growing fears about these systems’ real-world risks.
Is XIACF a Good Stock to Buy?
On Wall Street, analysts have a Strong Buy consensus rating on Xiaomi stock, based on 10 Buys and two Hold. The XIACF share price forecast is $8.11, which is 35.89% above the current trading level.
