Tesla's lawsuit has pushed Xiaomi's car business, which is in a critical period, to the forefront of public opinion.
According to Qichacha, on September 5th, Tesla (Shanghai) filed a lawsuit against Bingling Intelligent Technology (hereinafter referred to as &#34;Bingling Technology&#34;) for &#34;infringement of trade secrets and unfair competition disputes.&#34;
Wall Street News contacted Bingling Technology but did not receive a response. Tesla and Xiaomi have not commented on this lawsuit.
Compared with Tesla, Bingling Technology is not significant in terms of size. As a start-up company that has been established for just over a year, its order volume last year was only 15 million yuan. However, Bingling Technology has a special identity as a company in Xiaomi's car ecosystem.
It seems that Tesla has become concerned about Xiaomi and has started to take action against its car industry chain companies.
Bingling Technology focuses on automotive current sensors, which are one of the core components for the efficiency and safety management of new energy vehicles. Currently, this field is monopolized by foreign brands such as LEM and Honeywell, and there are not many domestic manufacturers with the ability to mass-produce automotive-grade current sensors.
Some industry insiders believe that Tesla's lawsuit against Bingling Technology may be related to the background of the company's senior management. Its founder used to work in a key business position at Tesla's supplier, Sensata.
Bingling Technology's founder, Jia Yongping, was formerly responsible for the electrification business in the Greater China and India markets at Sensata, where the business unit was directly responsible for the research and market operations of new energy vehicle products such as pressure sensors, motor rotor position sensors, fuses, and high-voltage DC contactors. Sensata is the exclusive supplier of Tesla's high-voltage main circuit and fast charging system DC contactors.
Whether Bingling Technology has caused controversy due to its technical similarities with Tesla's suppliers remains to be seen in court. Some industry insiders also believe that Bingling Technology is just a reserve in Xiaomi's industry chain and is not irreplaceable.
Bingling Technology is one of the many automotive industry chain companies invested by Lei Jun. In March of this year, Xiaomi Smart Manufacturing Investment Fund invested 389,000 yuan in the company, accounting for approximately 11.86% of the shares after the investment. Along with it, there is also Xianfeng Changqing Fund, which focuses on early-stage investments in technology and consumer fields. The investment amount is consistent with Xiaomi Smart Manufacturing Fund, and the two are tied for the second-largest shareholder of Bingling Technology, second only to founder Jia Yongping, who holds 46.3% of the shares.
Lei Jun is the actual controller of Xiaomi Smart Manufacturing Investment Fund. Although it has only been established for two years, it has completed two rounds of fundraising, with a total fundraising amount of 9.03 billion yuan. Xiaomi Smart Manufacturing Investment Fund has also made frequent investments in integrated circuits, as well as related upstream and downstream fields, lithium batteries, cars, and other segments.
According to Qichacha data, since Xiaomi announced its entry into the car manufacturing industry in March 2021, including Xiaomi Smart Manufacturing Investment Fund, Xiaomi's affiliated companies have made more than 50 investments in the automotive field, involving various aspects of car manufacturing.
Some industry insiders told Wall Street News that Lei Jun intends to replicate Xiaomi's previous route in the smartphone and IoT businesses by investing in the industrial ecosystem to realize his ambitions in car manufacturing. Previously, Xiaomi had invested in companies such as Zimi, Huami, and Stone Technology, which not only strengthened Xiaomi's control over the supply chain but also brought good investment returns to Xiaomi.
Lei Jun has ambitious plans for car manufacturing. His goal is to &#34;rank among the top five in the global automotive industry&#34; and achieve an annual shipment of over 10 million vehicles. This coincides with Tesla's goal of achieving a global annual sales volume of 20 million vehicles, and the two are bound to confront each other in the segmented market.
Currently, Xiaomi's progress in car manufacturing is impressive. Lu Weibing stated that Xiaomi's car manufacturing progress has been very smooth, and even some recent developments have far exceeded expectations. The summer testing of Xiaomi's cars is progressing very well, and the plan to start mass production and launch in 2024 remains unchanged.
Tesla's &#34;attack&#34; on Xiaomi's automotive ecosystem company may not have a significant impact, but it reflects the intense competitive atmosphere between the two. People are also curious whether Xiaomi, which also aims to penetrate the car market with autonomous driving as its spearhead, poses a threat to Musk.
It is difficult to determine whether Xiaomi, which has caught Musk's attention, will become a disruptor in the industry after its official debut next year. However, it is evident that the industry's competition has intensified, and no one is willing to give up any ground.
The future market will only become more brutal. It's a winner-takes-all situation, and the reshuffling of the automotive industry has just begun.

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