Xiaomi has followed Toyota in disassembling Tesla vehicles to study their engineering, using the findings to develop its YU7 electric SUV, a direct competitor to Tesla’s Model Y and Model X. The Chinese technology company reportedly purchased several 2026 Model Y units for analysis ahead of the YU7’s market launch.
Xiaomi founder Lei Jun said the teardown highlighted the Model Y’s “outstanding” engineering, though the company aimed to surpass it in key performance areas. The YU7 will feature an 800-volt powertrain, faster charging capabilities and what Xiaomi described as the largest battery pack in its class, while being priced below the Model Y in China.
In terms of driving range, Xiaomi said the base YU7 rear-wheel drive variant delivers up to 518 miles on China’s CLTC cycle, compared with 446 miles for Tesla’s rear-wheel drive Model Y under the same testing standard. The figure is higher than the U.S. Environmental Protection Agency’s more conservative estimates, but on a like-for-like basis the YU7 claims a clear advantage in range despite its lower price point.
Xiaomi entered the EV sector with the SU7 sedan in 2024 and has since expanded its portfolio in China, competing directly with Tesla’s Model 3 and Model Y. Despite not having vertically integrated operations like rival BYD, Xiaomi has leveraged its consumer electronics expertise and manufacturing scale to quickly establish a foothold in the industry.
The company has also unveiled plans to challenge Tesla’s premium offerings with models such as the SU7 Ultra and the forthcoming YU7 GT. According to local reports, Xiaomi is preparing to launch an extended-range electric vehicle (EREV) powered by an 80 kilowatt-hour battery supplied by CATL, which would be the largest pack yet fitted to a hybrid model in the Chinese market.
Source: Business Insider