What Tesla Learned From Tearing Down Chinese EVs

Tesla has always been known for bold ideas, but sometimes the smartest move is learning from someone else’s playbook. That is exactly what happened when Tesla engineers started tearing down Chinese EVs during the development of the Model 3 and Model Y.

This wasn’t anything unusual. Carmakers tear down each other's vehicles all the time. Still, what Tesla found inside those Chinese models shifted its entire production mindset and shaped two of the most successful EVs on the road today.

Former Tesla president John McNeill shared the story in a new Business Insider interview. He called Tesla a “learning sponge” during those years. The biggest lesson was not flashy tech or some wild battery breakthrough. It was something far more practical: ruthless parts reuse.

Chinese automakers were building cars with an extreme level of component consolidation. McNeill pointed out that BYD used the same wiper motor, the same heat pump and even the same conduits across multiple models. These were parts customers never think about. Chinese engineers treated them as solved problems, then focused resources on areas that actually improved the driving experience.

“The Chinese engineers are really disciplined about reusing parts underneath the hood that the customer can't see, and they save a lot of money that way.”

Tesla saw the benefit immediately. The Model 3 and Model Y ended up sharing around 75 percent of their components. That meant the same platform, similar powertrains, identical interior pieces and very few unique parts between the two.

This approach delivered serious results. Less complexity meant faster production and lower costs. Tesla passed those savings directly to buyers, which helped the Model 3 explode in popularity. In its first full year, Tesla sold around 138,000 Model 3 units in the U.S. It became the top-selling premium car in the country. China followed a year later, where the locally built Model 3 became the nation’s bestselling plug-in vehicle in 2020.

The world kept watching Tesla refine this formula. For a while, the cost advantage was unbeatable. But the competition evolved. China’s domestic EV brands surged with better pricing, stronger tech, faster charging and big in-car features that appealed to local tastes. While Tesla inspired the industry, companies like BYD built on the formula and moved at lightning speed.

Still, Tesla remains one of the strongest EV brands in the world. Its software, charging network and overall driving experience continue to set the standard outside China. What this teardown story reveals is how the company learns, adapts and fights to stay competitive.

For owners, it highlights a broader truth about EVs today. Innovation is not coming from one place anymore. It comes from a global battle where ideas get copied, improved and pushed forward.

Source: InsideEvs