Design thinking is an interdisciplinary problem-solving approach that combines user-centered focus, challenge framing, visual thinking, experimental methods, and cross-functional collaboration. It has always been regarded as an important means to improve corporate sustainable innovation capabilities and team performance. However, its effectiveness is a controversial topic, with some proponents praising its ability to solve systemic problems while others question its applicability within traditional business processes and its impact on sustainable innovation success. Because of its exploratory nature, there is currently a lack of quantitative empirical research on its impact. Therefore, this study takes Huawei’s electric vehicle R&D sustainable innovation project as an example to explore the impact of design thinking on corporate sustainable innovation capabilities and team performance by analyzing the relationship between design thinking and team empowerment. The study included hypotheses, semi-structured qualitative interviews, quantitative questionnaire data, and structured equation model analysis. This study reveals the mechanism by which design thinking operates in industrial enterprises. There is a positive correlation between design thinking practice and team performance in sustainable innovation projects. Moreover, through the regulation of design thinking, team performance can be strengthened. However, the applicability of design thinking in highly sustainable innovation environments needs further research. In summary, this study provides fundamental insights into the complex relationships between design thinking, corporate sustainable innovation, and team performance, and provides direction for future research.