The shares of Chinese tech giant Xiaomi dropped over 5 percent on Monday, after the company announced that the doors of one of its electric vehicles were unable to open due to a fiery crash in China, which killed one individual.
The stock fell by as much as 8.7 percent in Hong Kong, its worst decline in one month since April, and later recovered some of its losses after photos and video of a burning Xiaomi SU7 sedan in Chengdu circulated on Chinese social media.
Video and eyewitness testimonies reported that the bystanders were attempting unsuccessfully to get the doors of the burning vehicle open to save one of the occupants. Local reports said that the personnel at the scene utilized the fire extinguisher to put out the blaze.
According to the Chengdu police, the crash happened after the SU7 hit another sedan and killed a 31-year-old male driver who was suspected of driving under the influence of alcohol.
Xiaomi, a company that produces consumer electronics, software, and electric vehicles, did not respond immediately to a request for comments by CNBC.
The most recent incident is preceded by a deadly crash of the SU7 earlier in the year, which cast doubt on the smart driving capabilities of the vehicle and dropped the Xiaomi shares.
The crash may also increase attention on electronic door handles, which were popularized by Tesla but are now found on modern EVs.
In comparison to mechanical models, electronic door handles are dependent on sensors and electricity and can be faulty during a fire or power outage.
State-controlled media reported in late September that China is contemplating a ban on this type of electric door handle to deal with safety hazards associated with the feature.
However, the U.S. National Highway Traffic Safety Administration has initiated an inquiry into approximately 174,000 Tesla Model Y vehicles following complaints of broken door handles.
