Less than two weeks after Xiaomi delivered its “best-ever” annual results, the tech and automotive company and its beloved founder and CEO, Lei Jun, came under fire after a fatal accident involving a SU7 EV. Three female university students died in a fire caused by a crash on an expressway.
With reports of them using the smart driving assistance in the SU7 and also speculation that they were locked in the car during the fire, many felt distrust from Xiaomi’s cars. Xiaomi’s share prices plunged 5.59% in Hong Kong within a day, making it the biggest drop it has experienced this year. Lei Jun, who had been enjoying unmatched popularity among netizens, came under scrutiny for his response.
- #雷军回应 Lei Jun responds: 330 million views on Weibo, ranking number 1 on the Hot search list
- #小米SU7事故遇难者家属回应进展 Xiaomi SU7 accident victim’s family responds on the progress: 73.27 million views on Weibo, ranking number 1 on the Hot Search list
Although Lei Jun promised to be responsible, the timing of his response, which was 3 days after the Xiaomi SU7 accident took place, became the subject of heated debate. Some think that because he is the face of the brand, he should respond immediately, especially since he’s known to be sincere with users. Others believe there’s no right thing he can say in the heat of the moment, from a publicity point of view, it’s better to wait until the dust settles a little.
Although the stock selloff started before the accident, it nevertheless exacerbated the process. The most important thing is, of course, to restore the trust and goodwill of the consumers, which is difficult. If and how Lei Jun will achieve this remains unclear for now.
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