While traditional car companies have spent decades perfecting their vehicles, tech giants Xiaomi and Tesla are reshaping the auto industry at breakneck speed. These technology companies aren’t just making electric cars. They’re turning vehicles into smart devices on wheels, leaving established automakers scrambling to catch up.
The numbers tell a stunning story. Xiaomi received nearly 300,000 orders for its YU7 electric SUV within just one hour of launch. The company has already delivered over 200,000 SU7 units in record time. Tesla’s Model Y became hugely popular in China within weeks of its updated version launch. This speed isn’t normal in the car business, where traditional companies take years to develop and release new models.
Both companies are winning customers with aggressive pricing. Xiaomi’s YU7 costs $35,000, slightly less than Tesla’s Model Y at $36,760. The Xiaomi SU7 sedan sells for around $30,000, challenging luxury brands at a fraction of their price. By selling directly to customers without dealerships, they’re cutting out the middleman and keeping prices low. However, Tesla’s resale values have dropped significantly, with a 27% year-over-year decline affecting long-term ownership costs.
Tech companies slash electric vehicle prices by selling directly to customers, bypassing traditional dealerships entirely.
Performance specs that once belonged only to supercars are now standard. Xiaomi’s SU7 Ultra rockets from 0 to 100 kilometers per hour in just 1.98 seconds, making it the world’s fastest four-door electric vehicle. The YU7 offers eight inches more length than Tesla’s Model Y, giving passengers more room. The YU7’s wheelbase stretches 118 inches, providing exceptional interior space compared to competitors. Both companies include advanced self-driving features as standard equipment. The SU7’s battery can charge from 10% to 80% in just 11 minutes, outpacing most competitors’ charging speeds.
These aren’t just cars anymore. They’re computers with wheels. Xiaomi uses its smartphone knowledge to create seamless connections between devices. Tesla treats its vehicles as mobile computing platforms. Both companies send software updates over the air, adding new features after customers buy the car. Traditional automakers can’t match this digital integration.
The manufacturing approach is completely different too. Instead of relying on complex supply chains, both companies control more of their production. This vertical integration cuts costs and speeds up delivery.
Xiaomi plans to enter global markets by 2027, while Tesla already operates worldwide. China’s electric vehicle market has become the world’s toughest testing ground, forcing innovation at a pace traditional carmakers have never experienced.