• A Xiaomi SU7 caught fire after a severe collision, reportedly trapping a driver inside.
• This incident places Xiaomi back in the spotlight following a fatal SU7 crash in late March.

A Xiaomi (HKG: 1810) SU7 electric sedan caught fire following a severe collision earlier today, reportedly trapping the driver inside. The incident sparked a fresh wave of negative buzz about the company and sent its stock price tumbling.

Videos and images circulating on Chinese social media show the SU7 -- believed to be the Ultra variant priced at RMB 529,900 -- on fire at the roadside, with multiple passersby attempting unsuccessfully to open the doors.

The incident occurred around 3:16 am on October 13 on a street in Chengdu, Sichuan province, southwest China, according to a report today by local media outlet The Paper.

Based on circulating footage, images, and eyewitness confirmation, the driver tragically perished, the report said.

Following the crash, the driver was trapped inside the vehicle. Multiple bystanders attempted rescue efforts, but the doors remained inaccessible.

As firefighters arrived to extinguish the blaze, the vehicle emitted explosive sounds, The Paper noted.

After the flames were extinguished, only the vehicle's frame remained. Unable to open the doors manually, rescuers used hammers and electric saws to cut them open, the report observed.

Xiaomi's Hong Kong-listed shares fell sharply today, dropping by about 9 percent at one point.

The incident has raised questions about the safety of electronic door handles and thrust Xiaomi back into the spotlight following a fatal collision in late March.

The previous accident on the night of March 29 resulted in the deaths of three occupants, partly attributed to the vehicle's driver-assistance system disengaging just before impact.

Last month, Xiaomi announced a recall of 116,887 SU7 EVs due to potential limitations in its driver-assistance software handling extreme scenarios.