Xiaomi’s shares fell 4.1% to HK$27.84 on Monday after the company joined a sweeping recall of electric vehicles in China over door-handle safety concerns.
The recall targets vehicles equipped with flush-to-body door handles, a design popularized by Tesla that relies on buttons or touch sensors rather than traditional mechanical releases. Regulators warned that such systems may become inoperable if the vehicle loses power during an emergency, increasing the risk of entrapment.
Xiaomi confirmed its participation in the recall, alongside major domestic EV makers including Tesla, Leapmotor, Xpeng and Geely. The scope spans more than 100,000 vehicles across multiple brands, according to industry estimates. The move follows heightened scrutiny from Chinese authorities over automotive safety standards, particularly for new-energy vehicles.
The decline in Xiaomi’s stock occurred as broader technology shares in Hong Kong extended losses. The Hang Seng index fell as much as 2% on Monday, reflecting a broader retreat in major tech names beyond the EV sector. Xiaomi’s slide marked its largest single-day drop in over two weeks, erasing roughly HK$5.8 billion in market capitalization.
The recall process is expected to span several weeks, with affected owners notified via official channels. Industry analysts noted that while the immediate impact on sales is likely limited, the episode underscores rising regulatory and reputational risks for EV manufacturers in China’s competitive auto market.
