• A Li Mega caught fire after sparks emerged from its chassis while passing a traffic light, with flames engulfing the entire vehicle within seconds.
• Both occupants safely exited the vehicle after stopping, but the car was ultimately completely destroyed by the fire.

Li Auto (NASDAQ: LI) has come under scrutiny following a fire incident involving its Li Mega electric MPV (multi-purpose vehicle), reigniting safety concerns after a Xiaomi (HKG: 1810) EV fire earlier this month.

Multiple videos circulating on Chinese social media from last night to early this morning show a Li Mega traveling slowly when sparks erupted from its chassis at a traffic light intersection. The entire vehicle was engulfed in flames within seconds.

Fortunately, occupants quickly exited the front seats.

Li Auto shares fell in morning trading in Hong Kong today, dropping 2.99 percent to HK$84.3 at press time, hitting a new low since April 10.

The accident occurred late on October 23 Beijing time while the Li Mega was traveling on a road in Shanghai's Xuhui district, according to a report today by local media outlet The Paper.

The fire rapidly spread within seconds. Both occupants safely opened doors and escaped after stopping, though the vehicle was ultimately completely destroyed, the report noted.

At the time of the incident, the doors opened smoothly, and both the driver and passenger safely exited the vehicle, the report cited Li Auto's response as saying.

"We have dispatched personnel to the scene to handle the matter, and the fire department has also been involved," the Li Auto representative said.

"We will actively cooperate with the fire department's investigation and proceed with follow-up actions based on the findings," the representative added.

This marks the second high-profile EV fire incident this month. On October 13, a Xiaomi SU7 caught fire after a severe collision on a street in Chengdu, Sichuan province, southwest China, resulting in the driver's death.

The latest incident occurred as the Li Mega saw significant monthly sales growth and Li Auto intensified its efforts in the battery electric vehicle (BEV) segment.

The Li Mega, Li Auto's first BEV model, was launched on March 1, 2024. The company rolled out an updated version of the Li Mega on April 23.

Based on order momentum, stable monthly deliveries for the Li Mega were projected to reach 2,500-3,000 units, representing a 150 percent-200 percent increase compared to the stable monthly deliveries of the 2024 model year MPV, Li Auto said on June 1.

Li Mega deliveries reached 3,277 units in September, surpassing the previous record of 3,229 units set in March 2024 to hit a new high, according to data compiled by CnEVPost.

From January to September, the Li Mega delivered 15,019 units, accounting for 5.05 percent of Li Auto's total deliveries during the same period.

Li Auto launched the Li i8 -- its second BEV model and first electric SUV -- on July 29. The company rolled out the Li i6, its third BEV model, on September 26.

Li Auto is currently focused on ramping up production capacity for the Li i8 and Li i6. It aims to achieve stable monthly deliveries of 6,000 units for the Li i8 and 9,000-10,000 units for the Li i6 by year-end, the company previously said.