US-Sanctioned Chinese Tech Giant Aims To Make EV 'Superior To Tesla Model S'

Chinese telecommunications company Huawei Technologies‘ brand Luxeed, developed in partnership with China’s Chery Automobile, is gearing up to launch its inaugural electric vehicle model in November, according to a report by the South China Morning Post.

Luxeed’s Debut EV: Named the S7, Luxeed’s upcoming EV aims to make a statement in the competitive EV market. Specific details about the S7’s price, range, and features were undisclosed, but Huawei’s car unit head, Richard Yu Chengdong said "It will be superior to Tesla's TSLA Model S in various aspects.”

A Collaborative Effort: Luxeed’s S7 is built upon Chery’s E0X platform, designed specifically for two-motor all-wheel-drive EVs. This collaboration leverages Huawei’s technological prowess and Chery’s manufacturing expertise, creating high expectations for the vehicle.

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Huawei’s EV Ventures: U.S.-sanctioned Huawei has made significant inroads into the EV sector since introducing its Huawei HI intelligent automotive solution in April 2021. The company supplies automotive chips, lidar sensors, and internet connectivity technologies to various automakers, including Arcfox and Avatar Technology.

In late 2021, Huawei collaborated with carmaker Seres to launch the Aito brand, which offers luxury EVs sold in Huawei stores across mainland China. 

Why It Matters: China, the world’s largest automotive and EV market, is predicted to experience a 55% growth in battery-powered vehicle sales this year, with estimates exceeding 8.8 million units, according to UBS. However, the mainland EV market is highly competitive, with around 200 players, leading to concerns about overcapacity.

U.S.-based Tesla currently dominates China’s premium EV sector, facing competition from local EV startups like Nio, Li Auto, and Xpeng, known for their advanced intelligent features.

About two years ago Tesla CEO Elon Musk responded to reports of different electronic companies including Huawei, LG and Sony seeking to make a car.

“Prototypes are easy, production is hard,” Musk had said. 

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Photo courtesy: Huawei/Chery handout