Tesla’s Ex-Sales Chief Reveals ‘Super Smart’ Tactics from China

URGENT UPDATE: New insights from Jon McNeill, Tesla’s former president of global sales, reveal that the company has adopted “super smart” techniques from Chinese electric vehicle (EV) manufacturers. This revelation could significantly impact the competitive landscape of the EV market.

In an exclusive interview with Business Insider, McNeill, who served at Tesla from 2015 to 2018 and now sits on the board of General Motors, confirmed that Tesla has conducted detailed teardowns of various Chinese EVs. He emphasized that this practice allows Tesla to remain a “learning sponge” and adapt key strategies from competitors to enhance its own models, particularly the popular Model 3 and Model Y.

McNeill pointed out that one of the most valuable lessons learned involves the reuse of parts across different models. This strategy has allowed Tesla to optimize production processes and improve cost efficiency. Notably, during a 2019 earnings call, Elon Musk stated that approximately three-quarters of the parts used in the Model Y were shared with the Model 3, facilitating easier ramp-up in production.

The former executive did not specify which Chinese EVs Tesla analyzed, but highlighted BYD, a leader in the Chinese market, for its innovative approach to part reuse. “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,” McNeill explained.

This practice of reusing components is not unique to the Chinese automotive industry; however, McNeill noted that BYD and other Chinese manufacturers excel at integrating common parts across their vehicle lineup. “If you tear down all the BYDs — same windshield wiper motor across all of them; same heat pump across all of them,” he added, showcasing the depth of this strategy.

McNeill contrasted this with legacy automakers like Toyota, which often use entirely different components for various models. He stated, “The guts of a Corolla is almost completely different from a Camry,” highlighting a crucial difference in manufacturing philosophy.

As the EV market continues to expand, the ability to efficiently reuse parts is becoming increasingly critical for automakers, especially new entrants looking to scale production and reduce costs. McNeill pointed out the challenges of entering this capital-intensive industry, noting that only one auto company has successfully scaled in the last century—Tesla itself.

Emerging EV makers like Rivian have also taken notice of Chinese techniques. Rivian CEO RJ Scaringe mentioned that his team conducted a teardown of Xiaomi’s SU7 but found no groundbreaking concepts that could be utilized to reduce manufacturing expenses further.

Tesla’s focus on part reuse and production efficiency could provide the company with a distinct advantage as competition heats up in the global EV market. With increasing pressure to cut costs and streamline operations, the insights from McNeill underscore the importance of being adaptive and innovative in a rapidly evolving industry.

As developments continue to unfold, industry watchers will be keenly observing how Tesla and its competitors implement these strategies to shape the future of electric vehicles.