Xiaomi stock extended rally to 4% on Thursday. Shares were down for five consecutive sessions as Chinese police launched a probe into a deadly accident that involved one of its electric vehicles.

Xiaomi confirmed Tuesday that one of its SU7 electric vehicles was involved in an accident on an expressway in China, with local media reporting that three people died in the incident. Xiaomi’s Chief Executive Officer Lei Jun promised to keep working with the police in the investigation.

The incident marks a key test of confidence in Xiaomi, which had recently become an investor darling after it duplicated its smartphone success in China’s crowded EV market. The accident is also set to spark broader scrutiny of the smart driving software deployed in many of the modern new-energy cars.

Xiaomi’s entry into the EV market has been a big success, with its first model, the Xiaomi SU7, seeing overwhelming demand. Within the first 24 hours of pre-orders, the company reportedly received over 50,000 firm orders, putting pressure on production capacity.

Xiaomi last month raised its 2025 delivery target for EVs to 350,000 units after posting its fastest revenue growth since 2021.