Xiaomi CEO Lei Jun has praised the Tesla Model Y, even though this car is a direct rival to Xiaomi’s new YU7 SUV in China. His recent speech gives a rare look at how one big company studies another.
Tesla Model Y teardown by Xiaomi
Earlier in the year, Xiaomi bought three Tesla Model Y cars. The goal was simple: take them apart and study their design and technology. Lei Jun said his team was impressed after this analysis. In fact, he told customers, “If you don’t want to wait for the YU7, Model Y is a good choice.”
This was a clear suggestion during a period when the YU7 had over 240,000 orders in less than a day. People wanting Xiaomi’s new car now may need to wait over a year for delivery.
Why Tesla Model Y gets respect
Lei Jun explained that Model Y’s success does not come from fame alone. He said, “It’s the world’s best-selling car, not simply because of Musk. There’s a lot to it.” After tearing down the Model Y, he stated, “There’s a lot to learn from Model Y”. He noted advantages such as energy use, driving technology like FSD (Full Self-Driving), and other details.
When Tesla made the first official driverless delivery with a Model Y in the U.S., Lei congratulated Tesla in public, “Tesla is indeed amazing. It has led industry trends in many areas, especially FSD. We still have a lot to learn.”
YU7 vs. Model Y in China
The YU7 was made to challenge Tesla in China’s electric SUV market. Its base model is less expensive than the Model Y and comes with a longer single-charge range. At the launch event in Beijing, YU7’s starting price was 253,500 yuan (about $35,366), while the Model Y started much higher and offered less range. Higher trim YU7 versions focus on stronger performance. These moves aim right at Tesla’s lead in the Chinese market.
Tesla was the best-selling SUV in China last year, with over 480,000 Model Y deliveries. But Xiaomi’s new SUV is now getting attention fast. Lei Jun told his team and investors, “We will confront our most formidable competitor head-on.” Demand for the YU7 has been strong, leading some analysts to predict that Xiaomi could sell up to 100,000 units of this new SUV by the end of the year.
How buyers are choosing
With so many people waiting for new electric cars, Lei Jun’s direct suggestion, “Look at Model Y if you don’t want to wait,” shows a shift. For many buyers in China today, getting a car quickly is as important as new features.
In plain terms, Xiaomi’s CEO respects the work Tesla has done. He thinks Model Y is a strong product and does not hide that fact, even as he bets big on his own company’s future in electric cars.
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