Tesla Model Y now eligible for government purchases in China, boosting company's prospects in the region

From Investing.com: 2024-07-04 04:20:33

The best-selling Tesla Model Y is now eligible for government purchases in China, marking a significant milestone for the company in the region. The Jiangsu provincial government included the Model Y in a list of new energy vehicles for service cars, alongside Volvo’s XC40 and various Chinese-branded EVs and hybrids.

While the exact number of Model Y cars the government can purchase was not specified, this move represents a major shift as Tesla’s cars were previously banned from certain government and military compounds in China. Thanks to increased support from the Chinese government and a successful meeting between CEO Elon Musk and Premier Li Qiang, Tesla’s prospects in China are improving.

Despite Tesla’s deliveries of China-made vehicles falling by 9% in the first half of the year, the company’s plans to build a data training centre and introduce its Full Self Driving software in China demonstrate its commitment to the market. With ongoing tensions between the US and China, Tesla’s focus on expanding in China could prove to be a strategic move in the long term.



Read more at Investing.com: Tesla cars for first time on Chinese government purchase list By Reuters