Competition in China’s electric vehicle market took an unusual turn when Xiaomi’s CEO Lei Jun publicly praised Tesla’s Model Y during his company’s own product launch. The CEO called Tesla’s SUV “a very, very outstanding car” while introducing Xiaomi’s competing YU7 model at Beijing National Convention Center.
Xiaomi’s CEO called Tesla’s Model Y a very outstanding car while launching his company’s competing electric SUV.
Before developing the YU7, Xiaomi bought three Tesla Model Y vehicles in early 2025. The company’s engineers took them apart piece by piece. They studied every component and spent considerable time analyzing the vehicle’s internal space design. This teardown research helped shape their own electric SUV.
During his presentation, Lei Jun displayed both vehicles side by side on screen. He told the audience that consumers who can’t get the YU7 should consider buying the Model Y instead. He emphasized that Tesla’s success comes from vehicle quality, not just Elon Musk’s fame. Lei Jun also congratulated Tesla for completing their first driverless vehicle deliveries in Austin.
The CEO acknowledged the Model Y’s position as the world’s best-selling vehicle. He noted Tesla’s leadership in energy efficiency and Full Self-Driving technology. Tesla recently upgraded the Model Y’s range in China to 466 miles per charge. Tesla’s Model Y currently reports 209 problems per 100 vehicles, which is approaching the industry average and represents a significant improvement from previous years.
Xiaomi’s YU7 offers stronger specifications in several areas. The standard version provides 519 miles of range, while the Pro and Max versions deliver 478 and 472 miles respectively. Both vehicles match at 4.3 seconds for 0-62 mph acceleration, but the YU7 reaches 149 mph compared to Tesla’s 125 mph. The YU7 also charges significantly faster with its 800V architecture, adding up to 317 miles of range in just 15 minutes.
The YU7 Max variant produces 690 horsepower and 639 lb-ft of torque, accelerating to 62 mph in 3.23 seconds. It includes a 101.7 kWh battery pack, dual-motor all-wheel drive, and air suspension.
The YU7’s launch created massive demand with lengthy wait times. The vehicle received over 240,000 preorders in just 24 hours after its June launch. Lei Jun made a remarkable move by recommending competitors’ vehicles to customers facing delays. He suggested the XPeng G7, Li Auto i8, and Tesla Model Y as alternatives.
Tesla’s facing intense competition from Chinese manufacturers like Xiaomi, Xpeng, and Nio. These companies offer cheaper alternatives, and the Model Y’s been losing momentum in China’s market. Tesla quickly upgraded their Model Y AWD specifications after the YU7’s launch announcement.