Xiaomi founder admitted that he bought Tesla cars to study their technology in detail (3 photos)
Xiaomi’s Rapid Growth
Xiaomi has quickly become one of the most popular car brands in China, largely due to its already massive and hugely popular consumer electronics brand. Its SU7 sedan and YU7 SUV have already demonstrated their competitiveness, despite some initial problems. Xiaomi’s management has been outspoken about the importance of learning directly from competitors like Tesla.
Studying the Competitors
During a recent speech in China, Xiaomi CEO Lei Jun revealed that earlier this year the company purchased three Tesla Model Ys, took them apart, and studied every component. It’s safe to assume that Xiaomi did similar work with the Model 3 when developing its first car, the SU7.
A traditional approach in the industry
This approach is not unique to Xiaomi. Across the automotive and other industries, tearing down competitors’ products is a long-standing method of analysis. Electronics manufacturers routinely tear down smartphones and processors, while automakers buy competitors’ cars, strip them down to the last screw, and study everything from materials and software to manufacturing techniques. 
Even Ferrari has been caught up in similar speculation after the Xiaomi SU7 was recently spotted outside the brand’s headquarters in Maranello, sparking speculation that it could be compared to the company’s first dedicated electric model.
The Learning Process
Lei Jun said, “We bought 3 Model Ys earlier this year, took them apart one by one, and studied each component one by one.”
During the presentation at the National Convention Center in Beijing, Jun praised the Tesla Model Y and showed a comparison between the Tesla and the new YU7. Unlike many other industry CEOs, the Xiaomi CEO is not claiming that their latest model will significantly outperform Elon Musk’s best-selling car.
During the event, Lei told the audience, “If you don’t choose the YU7, you can consider the Model Y. I’m not criticizing the Model Y. The Model Y is a very, very outstanding car.”
High demand and limited supplies
Last month, Lei took to social media to urge those looking for a new electric car to consider options beyond Xiaomi and the YU7 as the tech giant faces a huge backlog of orders. Indeed, within 18 hours of the YU7’s launch, Xiaomi received around 240,000 orders, with some buyers told they would have to wait over a year to receive their order. 
Faced with these delays, Lei urged buyers to consider alternatives rather than waiting in line. Among its offerings were the Xpeng G7, the Li Auto i8, and, again, the Tesla Model Y.
Xiaodo’s leadership’s openness to studying competitors and recommending other brands is evidence of a mature approach to the market. It demonstrates that the company understands the importance of meeting customer needs, even at the expense of its own short-term interests, which can strengthen consumer trust in the long term. This strategy also highlights how quickly China’s electric vehicle market is growing and becoming more diversified, offering consumers a wide range of technologically advanced vehicles to choose from.
