Known for its dominance in smartphones and consumer electronics, Xiaomi has successfully extended its influence to the automotive industry. The company’s debut models, the SU7 sedan and YU7 SUV, have quickly demonstrated their competitive strength, drawing massive attention from consumers.
At the heart of Xiaomi’s electric vehicle strategy lies its learning-from-rivals approach. Founder and CEO Lei Jun revealed at a recent event that Xiaomi purchased three Tesla Model Y units earlier this year, dismantling them piece by piece to study every component in detail. It is also believed that a similar teardown of the Tesla Model 3 was conducted during the development of the SU7.
This practice is not unique to Xiaomi. In the automotive industry, as well as in sectors ranging from smartphones to processors and even supercars, reverse engineering competitors’ products has long been a standard method for benchmarking and innovation.
During his presentation at Beijing’s National Convention Center, Lei Jun praised Tesla, showing side-by-side comparisons of the YU7 and Model Y. In a lighthearted remark, he told attendees: “If you don’t choose the YU7, then you should definitely consider the Model Y—it’s a truly remarkable vehicle.”
However, Xiaomi now faces a major challenge: overwhelming demand. Within just 18 hours of launch, the YU7 received around 240,000 orders, resulting in delivery wait times exceeding one year. To ease frustration, Lei Jun even suggested alternative EVs on social media, naming the Xpeng G7, Li Auto i8, and Tesla Model Y as options.