Xiaomi Juggles AI Speed Record and EV Fire Crisis as Shares Languish Near Lows

Xiaomi unveils breakthrough AI model reaching 1,000 tokens per second, while a burning SU7 Ultra in Nanchang and a 50% yearly stock drop add pressure on its EV division.

Two sharply different headlines have emerged from the Xiaomi camp in the span of days: a breakthrough AI model that churns out 1,000 tokens per second, and a burning electric car on a bridge in Nanchang. The contrast could hardly be starker — and yet the stock remains stuck just pennies above its 52-week trough.

The SU7 Ultra fire on June 7 on the Yingxiong Bridge in Jiangxi province was quickly contained by local firefighters, with Xiaomi reporting no casualties. The company’s preliminary assessment noted that the traction battery had been operating normally before the incident, and there were no signs of thermal runaway. A battery self-ignition was provisionally ruled out. But the official cause will only be determined after the fire department completes its evaluation, leaving the matter open for now.

Meanwhile, on June 9, Xiaomi unveiled the MiMo-V2.5-Pro-UltraSpeed model, claiming it can achieve more than 1,000 tokens per second on eight standard GPUs without proprietary hardware. Developed jointly with TileRT, the system leverages FP4 quantization, DFlash decoding, and GPU-level optimisations to tackle both latency and cost at scale. The model is being offered as an API at roughly three times the standard pricing, backed by about ten times the output speed. A testing phase runs until June 23.

The AI push comes at a moment when Xiaomi’s shares are under relentless pressure. The stock closed at €2.99, narrowly above the 52-week low of €2.94, which itself was set on June 9. The year-to-date decline stands at roughly a third of the stock’s value, and over twelve months the loss is nearly 50%. The RSI at 35 signals a battered position, though it stops just short of oversold territory. Annualised volatility around 42% underscores the persistent short-term swings, while the distance to the 200-day moving average of €4.28 amounts to a discount of about 30%.

The electric-vehicle division, which is still bleeding cash, adds to the headwinds. In the first quarter of 2026, the EV segment generated revenue of 19.0 billion Yuan, with a gross margin of 20.1% and an operating loss of 3.1 billion Yuan. Broader financials for the group show a consolidated revenue of 99.1 billion RMB, a gross margin of 22.0%, and research spending up 33.4% to 9.0 billion RMB. Within that, the Smart EV, AI and Other New Initiatives category contributed 19.9 billion RMB. Deliveries in the first quarter totalled 80,856 vehicles, a drop of more than 44% quarter on quarter, which Xiaomi attributed to the phasing out of the first SU7 generation and slower YU7 deliveries.

The fire in Nanchang therefore hits an EV business that is already fighting to prove its viability. The outcome of the fire department’s investigation will be a critical catalyst: if it corroborates Xiaomi’s view that the battery was not at fault, the reputational damage could prove limited; a finding that points to a battery failure would throw the entire EV programme into a regulatory and public relations storm.

On the AI side, MiMo-V2.5-Pro had already claimed the top spot in both the Intelligence Index and Agentic Index from Artificial Analysis as of April 23, 2026, cementing its status among global open-source models. But hard commercial metrics — paying developers, recurring AI revenue, uptake of the premium UltraSpeed tier — remain absent ahead of the test phase’s conclusion. Should Xiaomi manage to convert the technical performance into sustainable monetisation, investors may eventually gain a second lens through which to view the stock, beyond the immediate EV woes. Until then, the shares are left waiting for clarity on two very different fronts.