Chinese automaker BYD Co. rebounded 5.4 percent after tumbling the day before on reports that one of its electric taxis burst into flames after being hit by a sports car, killing three.
The company’s shares plunged Monday in Shenzhen and Hong Kong, reflecting investor concern that the crash could highlight safety issues with electric cars as the Chinese government is pushing for their nationwide adoption.
BYD said it doesn’t have access to the electric car involved in the accident as it is currently being retained by the traffic police department in Shenzhen. The company said it will cooperate with the relevant authority over the investigation.
The Chinese company said the taxi was hit by a luxury sports car from behind at not less than 180 kilometres per hour, causing significant damage to the taxi, which later caught fire.
“The cause of the fire has not been determined and the company is currently waiting for a further accident examination report” from the police, it added.
Shenzhen, where BYD is headquartered, has 300 BYD taxis and 200 buses on its roads, South China Morning Post newspaper said.