Tesla Becomes First Foreign EV Approved as Chinese Government Vehicle

By Thea Felicity

Jul 05, 2024 11:33 AM EDT

CHINA-US-AUTO-TESLA-TRADE — Tesla boss Elon Musk (L) walks with Shanghai Mayor Ying Yong during the ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019. - Musk presided over the ground-breaking for a Shanghai factory that will allow the electric-car manufacturer to dodge the China-US tariff crossfire and sell directly to the world's biggest market for "green" vehicles.
(Photo : STR/AFP via Getty Images)

As a foreign automotive company, Tesla cars have been included on a Chinese government purchase list for the first time. CNN reported that the Jiangsu provincial government in eastern China has added Tesla to its catalog of approved vehicles for government agencies and public groups.

The Model Y, listed at 249,900 yuan ($34,377), is now available for government procurement.

Notably, Tesla is the only foreign-owned electric vehicle (EV) brand on the list, alongside domestic brands like Volvo, owned by China's Geely and state-owned SAIC. This inclusion marks a significant milestone for the EV company, considering that the Chinese market has struggled for Musk.

This is despite Tesla previously being prohibited from entering certain Chinese government establishments and several military premises due to security concerns. These restrictions were only lifted in April after Tesla's vehicles complied with China's specific data security standards, around the time Elon Musk visited Beijing.

Criticisms Against Tesla Being A Chinese Government Car

However, the decision has sparked debate on Chinese social media, with some users questioning the appropriateness of using foreign cars for government purposes.

In response, the Jiangsu government has clarified that the Tesla model is considered a "domestic car" since it is manufactured in Shanghai, not imported. Tesla's Shanghai gigafactory produced approximately 947,000 cars in 2023, most of which were sold within China.

In June, VCPost also reported that Tesla has partnered with Chinese AI companies to improve its lane-level navigation feature.

While now a Chinese government vehicle, Tesla still faces stiff competition from local rivals like BYD, which briefly surpassed Tesla as the world's top EV seller in late 2023. Musk's automotive company only regained its lead in early 2024, but the competition remains fierce.

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