Xiaomi Scrambles to Address EV Fire Incidents Amid $72 Billion Market Rout
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A Xiaomi Auto dealership in Hangzhou, Zhejiang province. Photo: VCG
Xiaomi Corp. has revealed two separate vehicle fires that occurred Monday, seeking to ease mounting safety concerns even as the company’s market capitalization has plunged by nearly HK$560 billion ($72 billion) over the past four months
Shares of the Hong Kong-listed smartphone and electric-car maker fell 2.74% to close at HK$35.48 on Tuesday. Since late September, the stock has slid from almost HK$60 to under HK$40, dragging its market value down to HK$924.2 billion.
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- Xiaomi reported two vehicle fires on Jan. 19, further raising safety concerns amid a HK$560 billion ($72 billion) market cap loss since September.
- Despite share buybacks totaling HK$7 billion for 188 million shares, Xiaomi’s stock slid from HK$60 to below HK$40; only 0.73% of its authorized repurchase completed.
- In 2025, Xiaomi delivered over 410,000 EVs and posted its first quarterly profit (700 million yuan); it targets 550,000 deliveries in 2026.
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Who’s Who
- Xiaomi Corp.
- Xiaomi Corp. is facing mounting safety concerns after two vehicle fires. Its market capitalization has plunged by nearly $72 billion. Despite a buyback program, shares have fallen, with the company aiming for 550,000 vehicle deliveries in 2026. Prior incidents include fatal crashes, leading to new safety standards. Nevertheless, Xiaomi's EV business reported its first quarterly profit.
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What Happened When
- January 2025：
- Chinese regulators released draft electric vehicle battery safety standards.
- March 2025：
- A Xiaomi SU7 operating in autonomous navigation crashed and caught fire on a highway in Anhui province, killing three people.
- April 2025：
- A fatal Xiaomi-related car accident involving fire after a crash occurred.
- Third quarter of 2025：
- Xiaomi's EV unit reported its first quarterly profit, with operating income reaching 700 million yuan.
- October 2025：
- A fatal Xiaomi-related car accident involving fire after a crash occurred.
- November 2025：
- Xiaomi started its stock buyback program.
- Since late September 2025：
- Xiaomi's stock began its decline from almost HK$60 to under HK$40, reducing market value to HK$924.2 billion.
- By mid-December 2025：
- Xiaomi's stock continued to weaken despite the share buyback program.
- January 3, 2026：
- CEO Lei Jun announced Xiaomi will target 550,000 EV deliveries in 2026 after exceeding 410,000 deliveries in 2025.
- January 19, 2026：
- Two separate vehicle fires involving Xiaomi reported: one SU7 model on a highway in Kaifeng, Henan (accident occurred around 4:03 p.m.), and another parked vehicle in Haikou, Hainan at a repair shop.
- January 19, 2026：
- Xiaomi completed a 32 consecutive trading day share buyback program, spending over HK$7 billion repurchasing 188 million Class B shares.
- January 20, 2026：
- Xiaomi shares closed at HK$35.48 after falling 2.74%.
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