Former GM VP Says Xiaomi YU7 Beats Tesla Model Y ‘In Almost Every Way’

A former General Motors executive who spent 12 years engineering America’s best-selling trucks just delivered a damning verdict on Tesla’s flagship SUV.

Terry Woychowski, President of Caresoft Global and former GM Vice President, told Bloomberg that Xiaomi’s YU7 electric SUV has “bested” Tesla’s Model Y “in almost every way.” The assessment comes from one of Detroit’s most respected vehicle engineers, whose company specializes in benchmarking competitors for major automakers.

Bloomberg’s David Welch drove the YU7 at Caresoft’s facility in Livonia, Michigan, and his findings align with Woychowski’s analysis. The Chinese smartphone maker’s second EV outperforms Tesla’s best-seller in acceleration, range, charging speed, and interior quality, all while costing $11,000 less.

Xiaomi YU7 Specs Crush Tesla Model Y Across the Board

The numbers tell a brutal story for Tesla.

Xiaomi’s YU7 Max produces 508 kW (690 hp) compared to the Model Y Long Range AWD’s 378 kW (514 hp). That power advantage translates to a 0-100 km/h time of just 3.23 seconds versus Tesla’s 4.6 seconds.

Range comparisons favor Xiaomi by a wide margin. The YU7 delivers 760 km (472 miles) on China’s CLTC cycle, while Tesla manages 526 km (327 miles) on the stricter WLTP standard.

Charging speed may be the most significant gap. The YU7 replenishes from 10% to 80% in just 12 minutes. Tesla owners wait 27 minutes for the same charge.

“They benchmarked the Model Y and said they wanted to be better,” Woychowski said. “When you do a comparison, they bested it in almost every way.”

$11,000 Cheaper Than Tesla With Premium Features

The YU7 Max carries a price tag of $45,900 (CNY 329,900) in China. Tesla’s equivalent Model Y Long Range AWD costs $56,990.

That $11,000 savings comes with features typically reserved for luxury vehicles costing twice as much. The YU7 includes a small refrigerator in the back, similar to those found in Cadillac Escalades and Land Rover models.

Welch described the interior experience as distinctly superior to Tesla’s minimalist approach. “Whereas Teslas are spartan inside, the YU7 feels richer,” he wrote. “Its panoramic display just below the windshield lights up beautifully and intuitively presents all the obligatory gauges.”

The YU7 rides smooth and quiet, with noticeably less road and wind noise than comparable EVs.

Xiaomi’s Engineering Leap Stuns Industry Veterans

Woychowski expressed particular amazement at Xiaomi’s rapid improvement between its first and second vehicles.

Caresoft’s teardown analysis revealed Xiaomi consolidated components that operate infotainment and driver-assistance functions from four separate modules in the SU7 sedan down to just one in the YU7. This integration saves weight and reduces manufacturing costs.

The company also removed two rear radars, relying instead on cameras only. This cost-cutting measure mirrors Tesla’s own controversial decision to eliminate ultrasonic sensors.

The YU7’s electric motor spins at higher RPMs than the SU7, delivering more power while improving efficiency. Battery charging speeds also increased between generations.

“What’s more impressive,” Woychowski said, “is how much the cost and engineering improved in the 12 months after the SU7 went to market.”

US Tariffs Block Americans From Buying Xiaomi EVs

Neither the YU7 nor Xiaomi’s SU7 sedan is available in the United States, and they may never arrive.

The Biden administration imposed a 100% tariff on Chinese electric vehicles in September 2024, effectively banning imports. Woychowski estimates Xiaomi would need to add approximately $3,000 in modifications to bring the YU7 into compliance with US safety standards.

If forced to use American suppliers and labor, costs would climb even higher.

“Nevertheless, the YU7 stands as a warning of what China’s ascendant auto industry can do,” Welch wrote. “If the world’s longstanding carmakers can’t match the Chinese on product charm and costs, they’re in trouble.”

Tariffs buy Western automakers time to catch up. But they won’t save anyone in the long run.

Xiaomi Hits Profitability Faster Than Any EV Startup

Xiaomi’s EV division reported a 700 million yuan ($98 million) profit in the third quarter of 2025, just 19 months after launching its first vehicle.

For context, Tesla required 61 months to reach its first quarterly profit. Even efficient Chinese competitors like Li Auto took 24 months.

The company raised its 2025 sales target to 400,000 units as demand outpaces production capacity. The YU7 attracted over 240,000 orders within 18 hours of its June launch, overwhelming Xiaomi’s manufacturing capabilities.

EVXL’s Take

When Ford CEO Jim Farley called Xiaomi “an industry juggernaut” after driving their SU7 for six months, skeptics could dismiss it as executive hyperbole. When he warned that China could “put us all out of business” with existing manufacturing capacity, critics called it alarmist.

Now a former GM Vice President who literally wrote the engineering specifications for America’s most profitable trucks is saying the quiet part out loud: a smartphone company just out-engineered Tesla.

This isn’t a competitor talking trash. Terry Woychowski runs a company that OEMs pay to objectively tear apart vehicles and identify weaknesses. His job is cold, analytical assessment. When he says Xiaomi “bested” Tesla “in almost every way,” that’s a professional diagnosis, not marketing spin.

The timing makes this verdict even more significant. As we reported when Xiaomi hit profitability in just 19 months, the company has proven its “smartphone on wheels” strategy works. While Ford hemorrhages $1.4 billion per quarter on EVs and legacy automakers retreat from electrification, Xiaomi is printing money.

Meanwhile, Tesla’s China sales have cratered to three-year lows as domestic competitors offer newer designs, better technology, and lower prices. The Model Y’s design dates to 2020. In the Chinese market, that’s ancient.

The 100% tariff wall protecting American automakers is a temporary reprieve, not a solution. Xiaomi plans global expansion by 2027, and when they arrive in markets without prohibitive duties, the competitive pressure will be immense.

Woychowski’s $3,000 compliance estimate for US safety standards barely dents the YU7’s $11,000 price advantage. Even with modifications, Xiaomi could undercut Tesla significantly while offering superior performance.

The uncomfortable truth for Detroit and Fremont alike: a company that made its name selling budget smartphones has mastered EV engineering faster than century-old automakers. As Farley himself admitted after visiting China, Chinese manufacturers have “far superior in-vehicle technology” that makes your entire digital life mirror seamlessly in the car.

Tariffs buy time. They don’t buy competitiveness. And time is running out.