Xiaomi Automotive Vice President's Remarks Spark Controversy and Stock Plunge Amid False Advertising Allegations

Representatives of the car owners engaged in a lengthy negotiation with senior executives of Xiaomi Automotive, but unfortunately, the two parties failed to reach a mutually agreeable solution. The car owners expressed dissatisfaction with the compensation plan proposed by Xiaomi, and as a result, they are planning to collectively sue the company for false advertising. The car owners are seeking compensation under the "one refund and three compensation" principle, which is a Chinese legal concept that requires companies to refund the purchase price and pay three times the amount as compensation for fraudulent activities. The lawsuit group has already attracted over 70 car owners, indicating a growing sense of discontent among Xiaomi's customer base.

This development marks a significant escalation in the conflict between the car owners and Xiaomi Automotive, and it remains to be seen how the company will respond to these allegations and the impending lawsuit. The comments made by the Vice President of Xiaomi's automotive division have sent shockwaves through the market, significantly impacting Xiaomi Group's stock price and testing investor confidence in the company's automotive ventures. On May 12, the company's stock price plummeted by nearly 6% at one point, eventually closing at 50.6 Hong Kong dollars, a drop of 1.46%. The next day, the stock price continued to fall to 48.65 Hong Kong dollars, a drop of 3.85%.

The remarks sparked a heated debate, with many netizens expressing concern about the future of Xiaomi's automotive business. If the Vice President's statements hold true, it could have severe implications for Xiaomi's automotive brand and operations, potentially tarnishing the company's reputation and deterring potential customers. The automotive industry is fiercely competitive, and any perceived instability or lack of confidence from top executives can have far-reaching consequences. Xiaomi, known for its innovative and affordable electronic devices, has been expanding its reach into the automotive sector, aiming to capitalize on the growing demand for electric and smart vehicles.

However, the recent comments may undermine these efforts, raising questions about the company's ability to navigate the complexities of the automotive market. As the situation unfolds, investors and industry observers will be closely watching how Xiaomi addresses these concerns and reassures its stakeholders about the future of its automotive business. The company's response will be crucial in mitigating any potential damage to its brand and restoring confidence in its ability to successfully compete in the automotive sector. Ultimately, the fate of Xiaomi's automotive ambitions hangs in the balance, and the company's next moves will be pivotal in determining the trajectory of its business in this critical industry.