Xiaomi’s Bold Move: Dismantling the Tesla Model Y for Innovation

“It’s a great vehicle,” is how Lei Jun, the CEO of Xiaomi, described the Tesla Model Y during a recent public appearance. This statement encapsulates the reason why Xiaomi has taken the radical step of disassembling this electric vehicle, aiming to glean insights that will help them create their first electric SUV that rivals—or even surpasses—Elon Musk’s offering. Lei Jun didn’t just admire the car; he openly acknowledged their intention to study it closely.

Exceptional. According to Lei Jun, the Tesla Model Y stands out as a “very, very exceptional car.” However, he argues that when it comes to interior space, Xiaomi’s own Yu7 has the upper hand. In a public discussion, reported extensively by Business Insider, he made it clear that while Tesla’s vehicle excels in many areas, Xiaomi aims to outdo it in autonomy and overall value.

In a pointed comparison, Lei Jun articulated Xiaomi’s goal to address perceived weaknesses in Tesla’s design. According to him, the Xiaomi Yu7 is equipped with broader features and boasts a superior range, attributes that could sway potential electric vehicle (EV) buyers. As per an article from Xiaomi World, he even stated that if consumers are not considering the Xiaomi Yu7, the Tesla Model Y would be the next best choice.

Three Units. Lei Jun confirmed that the company procured three Tesla Model Ys with the specific intent of disassembling them. This decision to tear apart industry-leading technology allows Xiaomi to closely examine the elements that have contributed to Tesla’s overwhelming success in the electric vehicle market.

Xiaomi’s approach is far from unique; many automakers have adopted similar tactics. For instance, Toyota hired consultants to investigate BYD and Tesla’s technology, while Mercedes-Benz turned to Zeekr, another electric car manufacturer, to discern what grants them significant range.

Xiaomi's electric SUV launch

And Xiaomi. Despite Xiaomi’s active disassembly of other brands’ vehicles, it has also piqued the interest of competitors. Jim Farley, the CEO of Ford, has openly praised the Xiaomi vehicle that he drove for several months, and even Hyundai has taken note of Xiaomi’s innovation, showcasing its interest by bringing the vehicle to South Korea.

Throughout the summer, a notable photograph surfaced showing an Xiaomi SU7 Ultra entering the Ferrari factory gates in Maranello, Italy. Though unconfirmed, this appearance suggests that even traditional luxury brands are keen on understanding what Xiaomi has to offer in the rapidly changing EV landscape.

Because? It’s standard practice in the automotive industry for manufacturers to dissect competitors’ vehicles to identify their secrets to success. In Xiaomi’s case, the act of studying the Tesla Model Y stands out for its specifics, particularly as it holds the title of being the most sold electric car globally.

Delving into the architectural innovation of the Xiaomi Su7 and the soon-to-be-released YU7 electric SUV, the company is positioning itself as a formidable contender against Tesla. By emphasizing autonomous driving technology, range, and unique pricing, Xiaomi is set to disrupt the market significantly.

A Compliment. The practice of openly referencing competitors may appear aggressive in Western contexts, but it plays a crucial role in the Chinese market. In China, this sort of “inspiration”—or even emulation—is often celebrated as a sign of ambition and respect toward market leaders. This cultural difference allows Xiaomi’s presentations to be heavily peppered with references to giants like Apple, Tesla, and Porsche, showcasing the benchmarks they aim to surpass.

Ultimately, Xiaomi’s strategy to disassemble competitor vehicles is emblematic of a broader trend in the EV market. With a focus on improvement and innovation, they are not merely replicating; they are carving a path toward a sector that values both quality and affordability.

As Xiaomi continues to refine its electric offerings, one thing is clear: the competition is only getting stiffer. While they may borrow from Tesla’s successful formula, their unique offerings may very well lead to a new chapter in the world of electric vehicles.



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