Xiaomi Responds to Two EV Fires as Stock Plummets, Wiping Out HK$560 Billion from Peak

On January 20, Xiaomi Group reported two vehicle fire incidents via its official Weibo account, both occurring in the prototype production workshop and causing no injuries. The company has established a special investigation team to thoroughly determine the cause and emphasized its strong commitment to product quality and safety. Earlier, on January 3, Lei Jun had pledged during a live stream to directly address market concerns. Affected by the incidents, Xiaomi's share price continued to face downward pressure, closing at HK$35.48 per share on January 20—a decline of 2.74%—bringing its market capitalization down to HK$924.2 billion. Since the launch of its new vehicle in late September last year, Xiaomi’s stock price has tumbled from a high of nearly HK$60, falling below HK$40 and wiping out approximately HK$560 billion in market value. The long-term impact of these incidents on Xiaomi’s automotive business remains to be seen.