Chinese technology powerhouse Xiaomi faced a sharp drop in its stock price on Monday, falling more than 5% after reports surfaced that the doors of one of its electric vehicles failed to open following a deadly crash in China.

The company’s shares plunged as much as 8.7% in Hong Kong — the steepest decline since April — before recovering slightly later in the day. The sell-off came after images and videos circulated on Chinese social media showing a Xiaomi SU7 sedan engulfed in flames in the city of Chengdu.

Eyewitnesses and online footage captured bystanders desperately attempting to open the vehicle’s doors to rescue a trapped occupant, but their efforts were unsuccessful. Firefighters eventually extinguished the blaze, according to local media reports.

Authorities in Chengdu said the accident occurred when the SU7 collided with another sedan, killing a 31-year-old male driver who was suspected of being under the influence of alcohol.

Xiaomi, best known for its smartphones and expanding portfolio of consumer electronics and smart vehicles, has not yet issued an official statement regarding the crash.

This is not the first safety controversy surrounding Xiaomi’s electric cars. A fatal SU7 crash earlier this year sparked public concern about the model’s intelligent driving system, triggering a previous decline in Xiaomi’s market value.

The recent tragedy may also heighten scrutiny of electronic door handles, a design feature popularized by Tesla and now widely used across the EV industry. Unlike traditional mechanical handles, these rely on electrical systems and sensors — components that can malfunction in cases of fire or power loss.

In response to mounting safety concerns, Chinese regulators are reportedly considering restrictions or an outright ban on electric door handles. State-affiliated media outlets reported in late September that discussions are underway to evaluate the risks associated with the feature.

Meanwhile, safety concerns are not limited to China. The U.S. National Highway Traffic Safety Administration recently opened an investigation into approximately 174,000 Tesla Model Y vehicles following reports of door handle malfunctions, underscoring growing global attention to this design flaw within the EV sector.

The incident serves as a stark reminder of the challenges facing the rapidly evolving electric vehicle industry — where innovation, convenience, and safety must all align to maintain public trust.