After Toyota took their predecessor apart, Xiaomi has now bought several 2026 Tesla Model Y units to disassemble and learn what makes them tick on the run-up to the release of its inaugural YU7 electric SUV.
According to Xiaomi's founder Lei Jun, the Model Y offers "outstanding" engineering, yet Xiaomi examined every single Model Y part and managed to best its range and interior spacing. The Model Y got schooled in several other areas by the YU7, too, with Xiaomi's debut electric SUV offering faster charging, 800V powertrain, and the biggest battery in its category, all at a price lower than the Model Y in China.
There, the Xiaomi YU7 offers longer range on a charge than the Tesla Model Y, with the base RWD model rated for 518 miles, against the Model Y RWD's 446 miles on the same CLTC cycle that China uses for range testing. It is about a third more generous than the EPA estimates in the US, but in an apples-to-apples range comparison the Model Y still loses to the YU7 despite its higher price.
Xiaomi, which was mostly known for its phones and home electronics like the 4K Xiaomi TV Box, entered the electric vehicle market with the SU7 sedan last year, and has been notching market wins ever since. Despite not having vertical integration as both an EV and battery maker like BYD, it managed to leverage its significant electronics device production knowledge and capacity to make very competitive EV models that take on the Model 3 and Model Y directly.
It is also targeting Tesla's premium vehicles like the Model S and Model S Plaid with the SU7 Ultra and the upcoming YU7 GT version. Xiaomi isn't content with beating Tesla, though, as it wants to be a significant automotive industry player in the world's most cutthroat car market, too. It is reportedly planning to release an EREV with a mixed powertrain that will use the biggest pack to be found in a hybrid vehicle, a new 80 kWh battery that CATL could announce soon, offering an outstanding total range.