Xiaomi shares touched their weakest level in a year on Tuesday, sliding to 2.92 euros — a shade below the previous 52-week low of 2.94 euros set just days earlier on June 9. The decline extends a rout that has shaved more than 35% off the stock since January and wiped out over 50% of its value over the past twelve months. Two unrelated events — a vehicle fire in Jiangxi province and a sharper-than-expected drop in YU7 SUV orders — have converged to rattle investor confidence in the company’s electric-vehicle ambitions.
The fire broke out on June 7, when a Xiaomi SU7 Ultra caught fire on the Yingxiong Bridge in Nanchang. Fire crews extinguished the blaze and no injuries were reported, according to the company. Xiaomi moved quickly to contain the reputational damage, stating that the traction battery had been operating normally before the incident and that no evidence of thermal runaway was detected. The company has provisionally ruled out a battery self-ignition, but the final cause will not be known until the local fire department’s investigation concludes. For a brand that has yet to prove its EV unit can sustain profitability, any suggestion of a safety flaw could prove damaging.
The fire probe coincides with a slowdown in orders for the YU7, the company’s hotly anticipated SUV. CEO Lei Jun fueled speculation when he announced that some YU7 vehicles were available for immediate delivery, a claim that online commentators interpreted as a sign of weak demand. Xiaomi pushed back, explaining that the rapid-delivery inventory came entirely from cancelled orders and undelivered vehicles; regular orders still require a six-to-nine week wait. The sales trajectory suggests a different story: the YU7 launched in January with nearly 38,000 units, dropped to around 20,000 in February, and slumped to under 10,000 in April. That pattern is typical of a demand normalization after a model release, but the speed of the decline has unnerved analysts.
Overall Xiaomi Auto deliveries remain solid. In April, just over 36,700 vehicles were sold in China, a 71% jump from March, and deliveries exceeded 30,000 in May. But reaching the full-year target of 550,000 vehicles is a demanding task. Cumulative deliveries in the first five months are estimated at 140,000 to 150,000, meaning monthly volumes will need to surge past 60,000 in the second half of the year — a level that looks ambitious given the current pace.
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The financial picture makes the target even harder to stomach. Xiaomi’s automotive division lost roughly 5,600 dollars per vehicle in the first quarter of 2026. The EV segment posted revenue of 19.0 billion yuan and a gross margin of 20.1%, but operating losses clocked in at 3.1 billion yuan — a direct consequence of higher memory-chip procurement costs and an intensifying price war. Group-level results mirrored the strain: revenue declined nearly 11% year-on-year to 99 billion yuan, while adjusted net income plummeted by more than 43% to 6.07 billion yuan.
Investors are voting with their feet. The stock is now trading nearly 32% below its 200-day moving average of 4.26 euros, and the relative-strength index has dropped to 32 — just above the conventional oversold threshold. The 52-week high of 6.69 euros is more than 56% away.
Xiaomi is not sitting still. The company appears to be preparing an extended-range electric-vehicle line, with spy photos and industry reports suggesting three EREV SUVs aimed at family buyers rather than the current performance-oriented customer base. The name “Xuntian” has been trademarked, potentially for a separate sub-brand. On the smartphone front, the 17T series debuted in China on June 8 — the first time in years the model line has been available domestically. The Chinese version costs the equivalent of roughly 385 euros, less than half the European price of 749.99 euros, and packs a larger 7,000 mAh battery versus the 6,500 mAh unit in global models.
For the stock to stabilize, investors need clarity on two fronts: the fire investigation’s outcome, and the company’s ability to ramp monthly deliveries above 60,000 units before year-end. A clean safety report could contain the reputational risk, but the delivery math leaves little room for error.
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