Xiaomi Shares Fall Amid Over 300 SU7 Ultra EV Refund Demands

Xiaomi is facing significant consumer backlash and legal challenges over alleged false advertising related to the carbon fiber hood on its SU7 Ultra electric vehicle. The hood, marketed as a functional cooling component with dual air ducts, was revealed by buyers and automotive bloggers to be largely decorative, prompting over 300 customers to demand refunds or cancel orders. Xiaomi apologized for the miscommunication, offering hood replacements or loyalty points, but dissatisfaction remains high, with a consumer rights group formed to seek full refunds. This controversy follows a fatal SU7 accident earlier in the year that raised safety concerns and led Xiaomi to rebrand its assisted driving system. Despite these issues and a notable drop in Xiaomi's Hong Kong stock price, the company maintains its ambitious target to sell 350,000 EVs in 2025. The incident highlights the challenges tech companies face when entering the competitive EV market, where marketing claims must be carefully managed to maintain consumer trust.