It is often said imitation is the sincerest form of flattery. For Chinese tech giant Xiaomi, that flattery involved wrenches, screwdrivers, and a hands-on Tesla teardown. CEO Lei Jun confirmed that the company purchased three Tesla Model Ys and disassembled them to understand every component.
Speaking at the Beijing National Convention Center, Lei explained the process with unusual transparency. “We bought three Model Ys earlier this year, disassembling the parts one by one, and studied every component,” he said. This detailed analysis allowed Xiaomi engineers to benchmark Tesla’s design and software integration before finalizing the YU7 electric SUV.
The exercise was more than reverse engineering—it was a study in excellence. Lei repeatedly praised Tesla’s work, noting the Model Y as “a very, very outstanding car.” He even told the audience, “If you don’t choose YU7, you can consider Model Y.” Such public recognition of a direct competitor is rare in the automotive world.
Xiaomi’s method, known as benchmarking or teardown analysis, is a standard practice in the industry. Automakers and electronics companies routinely purchase competitors’ products to study material choices, manufacturing techniques, and hidden cost-saving measures. Smartphone makers dissect iPhones, while traditional car companies analyze rival transmissions.
Xiaomi applied the same approach beyond Tesla. Observers recently spotted a Xiaomi SU7 sedan near Ferrari’s headquarters in Italy, sparking speculation that even high-end sports car designs may inform the company’s engineering.
The results are striking. Xiaomi already has a strong reputation in consumer electronics, and its EV business is booming. When the YU7 launched in June, it received over 240,000 preorders within the first 24 hours. However, demand has outpaced supply, leaving some customers with wait times exceeding a year.
This unprecedented backlog has led Lei Jun to recommend competitors to eager buyers. On social media and at public events, he has encouraged potential customers to consider alternatives such as XPeng, Li Auto, and—even—Tesla Model Y, the very car Xiaomi used for its teardown research.
Xiaomi’s YU7 Tesla teardown strategy demonstrates how benchmarking can accelerate innovation. By studying industry leaders carefully, Xiaomi has rapidly entered the competitive EV market while maintaining a rare level of transparency and respect for its rivals.
