Xiaomi’s CEO, Lei Jun, revealed this week just how seriously the company is studying Tesla as it pushes into the electric vehicle (EV) market. During his annual speech at the Beijing National Convention Center, Lei said the company had purchased three Tesla Model Ys earlier this year, completely disassembled them, and carefully examined every single part.
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“We bought 3 Model Ys, disassembled the parts one by one, and studied every component,” Lei told the audience. Behind him, a large screen showed a side-by-side comparison of Tesla’s Model Y and Xiaomi’s new YU7 electric SUV.
Lei praised Tesla’s car as “very, very outstanding,” but he emphasized that Xiaomi’s YU7 was designed to compete head-to-head. “If you don’t choose YU7, you can consider Model Y,” he said, noting that Xiaomi had spent a long time perfecting the YU7’s interior space and design. He also highlighted the YU7’s battery life and overall performance, arguing that it offers strong value for its price point.
The launch of the YU7 has already made waves in China’s crowded EV market. When it opened for preorders in June, the model attracted more than 240,000 bookings within just 24 hours. This comes as Tesla faces intensifying competition from local rivals like Xiaomi, Xpeng, and Nio, all of which are offering more affordable alternatives. Tesla’s China sales fell 4% year-on-year in August to 83,200 units, according to the China Passenger Car Association.
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While Lei avoided criticizing Tesla directly, his comments underscored how closely Xiaomi is benchmarking its new vehicles against the US automaker’s designs. For Xiaomi, the challenge now is not only to match Tesla in quality but also to stand out in a fast-moving market where brand loyalty, affordability, and innovation are shaping the future of EV adoption in China.