Tesla sues Xiaomi-backed EV tech maker for stealing their tech secrets, unfair competition disputes

Tesla is suing a major Chinese EV component manufacturer that is backed by Xiaomi, for stealing a secret EV from them. Chinese companies have a reputation for not honouring international copyright laws and treaties

Tesla has reportedly filed a lawsuit against a Chinese firm called Bingling Intelligent Technology, alleging infringement of tech secrets and unfair competition, as per Reuters.

Notably, Bingling Intelligent Technology has Xiaomi as one of its stakeholders, with Xiaomi owning an 11.9 per cent stake in the company. This Chinese firm is known for its design of microchips and other automotive components.

This legal action by Tesla comes at a time when Xiaomi is actively seeking a share of the electric vehicle (EV) market. Xiaomi is also striving to incorporate autonomous driving technology into its electric cars. Just last month, Xiaomi obtained approval from China’s National Development and Reform Commission (NDRC) to manufacture electric vehicles.

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Xiaomi has even unveiled its first electric sedan, codenamed MS11 or Modena, which aims to compete directly with Tesla’s flagship Model S. To facilitate mass production of the Modena, the Chinese smartphone giant has partnered with local companies in a joint venture.

What’s intriguing is that Tesla’s lawsuit against this tech company is part of a growing trend of Chinese firms being accused of EV technology theft from global companies. China anyway has had a reputation of not respecting international copyright laws.

There have been previous instances, such as a former Apple employee facing charges for stealing self-driving vehicle data on behalf of a Chinese company. This individual later joined a joint venture between Chinese tech firm Baidu and automaker Geely, focusing on self-driving vehicle technology.

In 2020, the FBI even issued a warning to U.S. automakers about China’s high interest in stealing electric car technology.

China currently holds a prominent position in the EV manufacturing sector, with numerous domestic electric car brands dominating both the Chinese and global markets. Chinese EV manufacturers are aggressively pursuing a leading role in the global electric vehicle market.