Xiaomi Stock Hovers Near Yearly Low as EV Fire Probe and Delivery Slowdown Cloud Outlook
10.06.2026 - 14:05:46 | boerse-global.de
The company is grappling with a fire investigation on an SU7 Ultra in Nanchang while simultaneously reporting a sharp drop in monthly deliveries, sending its stock dangerously close to 52-week lows.
Shares slipped 2.47 percent on Wednesday to €2.92, leaving the stock just 2 euro cents above the year’s worst level of €2.94 set on June 9. The descent has stripped a full 35 percent from the share price since January, and the 200-day moving average of €4.28 now sits roughly 30 percent above the current price. The relative strength index at 35 suggests the stock is oversold but not yet at an extreme.
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Fire on the Yingxiong Bridge
On June 7, a Xiaomi SU7 Ultra caught fire while travelling on the Yingxiong Bridge in Jiangxi province. Fire crews quickly brought the blaze under control, and the company confirmed there were no injuries or fatalities. In an initial assessment, Xiaomi said the drive battery had been operating normally before the incident and found no evidence of thermal runaway, effectively ruling out a battery self-ignition for now.
The operative word is “preliminary.” A final determination must wait for the fire department’s official report. Until then, the case remains open, leaving a cloud over the safety credentials of Xiaomi’s fledgling EV lineup.
Delivery momentum stalls
While safety questions swirl, the operational picture is also deteriorating. Xiaomi delivered 32,759 vehicles in May, a drop of nearly 11 percent from April. The core SU7 model accounted for 24,023 units, down about 14 percent year-over-year. The newer YU7 series also lost momentum on a sequential basis.
The company’s first-quarter numbers laid bare the underlying financial strain. The EV segment generated revenue of 19.0 billion yuan, but booked an operating loss of 3.1 billion yuan. Gross margin shrank to 20.1 percent from over 23 percent a year earlier, as higher subsidies and costly components ate into profitability. The very scaling that fuels the growth story is undercutting the bottom line.
Total first-quarter deliveries stood at 80,856 vehicles, a plunge of 44 percent from the prior quarter, which Xiaomi attributed to the phase-out of the first-generation SU7 and lower YU7 volumes.
Brutal price war at home
China’s auto market remains a furnace. In May, all ten best-selling vehicles were either pure electric or hybrids, and the SU7 managed a top-five finish. That success came at a cost, as nearly all industry growth is now concentrated in new-energy vehicles, pitting Xiaomi directly against established rivals in a relentless price war.
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For the stock to stage a meaningful recovery, the company must prove it can build cars profitably. If margins fail to stabilise in the second half of the year, downward pressure on the equity is likely to persist. The fire investigation adds a fresh layer of uncertainty—if the authorities rule out battery failure, reputational damage may be contained; a different finding could invite regulatory and public scrutiny on the entire EV programme.
