When a company buys a competitor’s product, it usually means they’re a customer. But for Xiaomi, buying three Tesla Model Ys wasn’t about driving them. Instead, the tech giant took the world’s top-selling electric car and tore each one apart, piece by piece. Their goal was simple: figure out how it works, then build something even better.
This deep dive into Tesla’s design helps Xiaomi create their own electric SUV, the YU7. Xiaomi’s CEO, Lei Jun, openly talked about taking apart the Teslas. He even called the Model Y “a very, very exceptional car.” He said this during a public talk, reported by Business Insider.
But praise came with a challenge. Lei Jun pointed out where Xiaomi’s YU7 could win. He claimed the YU7 offers more inside space and a longer driving range. Most importantly, he believes Xiaomi’s pricing makes it a much better deal.
Studying the Competition
Taking apart rival products is not new in the auto world. Xiaomi confirmed they bought three Tesla Model Y vehicles for this detailed study. They wanted to see what made the segment leader so special. Their aim was to find out what set it apart.
Other big names do this too. Toyota, for example, once hired experts to understand what made BYD and Tesla cars different. Mercedes-Benz also studied models from Zeekr, a Chinese brand owned by Geely. Mercedes wanted to know how Zeekr claimed such long driving ranges, up to 1,000 kilometers.
Seventy Japanese car companies even joined forces for a huge project. They pulled apart 16 different electric vehicle models. This included the BYD ATTO3, NIO ET5, and the Tesla Model Y. They cataloged over 90,000 components. This shows just how common it is to learn from rivals by dissecting their work.
When the Tables Turn
While Xiaomi is studying others, they are also being studied. Jim Farley, Ford’s CEO, has said many times that he bought a Xiaomi car and drove it for months. Hyundai also took a Xiaomi car back to South Korea for examination.
Last summer, a photo showed a Xiaomi SU7 Ultra entering the Ferrari factory in Maranello. There’s no official word from Ferrari. However, it looks like the Italian automaker might also be taking a close look at the Xiaomi SU7 Ultra. This car holds the title of the fastest electric vehicle at Nürburgring.
It’s clear that companies often buy rivals’ models. They want to understand how they work and what makes them special. This helps them find ways to improve their own products. Xiaomi’s actions aren’t unique, but they highlight who Xiaomi sees as the top player to beat.
Xiaomi’s Big Goal: Surpassing Tesla
The Tesla Model Y has been a huge success. It was the most purchased electric car globally. It even became the first all-electric model to be the best-selling car overall.
Since releasing the Xiaomi SU7 and focusing on the YU7 electric SUV, Xiaomi has made it clear they want to outdo Tesla. They highlight their own self-driving technology, though some features are limited due to local rules in the YU7. Xiaomi also points to its cars’ range and, crucially, their price. Xiaomi’s versions often sell for much less than Teslas.
There’s an interesting cultural point in this rivalry. When a Chinese manufacturer directly calls out a competitor in its presentations, it’s not always an aggressive move. In China, using a rival as “inspiration” or making direct comparisons is a way to show who the market leader is. It shows who they aim to be like, and ultimately, who they want to surpass.
This approach is different from what we often see in Western markets. But it helps explain why Xiaomi’s phone launches are full of comparisons to Apple. It also explains why their car presentations frequently compare their models to both Tesla and Porsche. Tesla represents value and mainstream leadership, while Porsche represents high performance in their respective categories.
