Xiaomi shares fall amid customer complaints about misleading advertising for the SU7 Ultra electric car

Xiaomi shares fell 5.7% in Hong Kong on Monday after local media reported that more than 300 people wanted to cancel orders for the SU7 Ultra electric car due to “misleading advertising” about the hood design, Bloomberg writes.

Xiaomi introduced a sporty version of its SU7 electric sedan earlier this year. One of the optional extras was a “carbon fiber hood with dual air ducts” priced at 42,000 yuan (≈$5,800). The company’s CEO Lei Jun emphasized that this is not just a decorative element, but also a functional ventilation of the wheels through the air ducts.

However, after receiving the car, some owners removed the hood and discovered that instead of real air ducts there were only holes with plastic inserts. Most of the design turned out to be identical to the standard version.

Xiaomi apologized for the "miscommunication" and explained that the carbon hood mimics the racing version of the SU7, which was unveiled at the Nurburgring in Germany in the fall. The company offered to change unfulfilled orders to the standard hood or provide 20,000 bonus points to those who have already received the car.

Despite this, some customers remained dissatisfied and created a consumer rights group, which already has over 300 members and is demanding a full refund.

This is the second major blow to Xiaomi's reputation after the fatal SU7 accident in March, which claimed the lives of three people and heightened attention to the safety of electric cars.

Lei Jun admitted on social media that "the last month has been the most difficult" in Xiaomi's history.