Tesla cars have made their way onto a Chinese government purchase list, marking a significant milestone for the company.
Tesla Makes Historic Entry into Chinese Government Purchase List
According to a report from state-owned media outlet Paper.cn, Tesla stands out as the sole foreign-owned EV car brand featured in the purchase catalog released by the government of Jiangsu province in eastern China.
Other brands that were mentioned include Volvo, which is owned by China's Geely, and SAIC, which is state-owned.
This indicates that government agencies and public groups in the province have the opportunity to acquire them as service cars, underscoring the close association between China and Elon Musk's company.
The development has gained significant attention on Chinese social media, with certain users raising doubts about the suitability of foreign cars for government use.
According to a report by state-owned National Business Daily on Thursday, July 4, the Jiangsu government has attempted to address these concerns by stating that the Tesla model is considered a domestic car rather than an imported one, as per a government employee.
Surging EV Sales in China
In 2023, Tesla produced an impressive 947,000 cars in China, with the majority of them being utilized within the local market.
According to the government's purchase catalog, the Shanghai-made Model Y from Tesla is priced at 249,900 yuan ($34,377).
China has emerged as a crucial market for Tesla, with the country now responsible for over 50% of global electric vehicle sales. In the previous year, a significant portion of Tesla's total revenue came from China.
However, the US carmaker is also encountering increasing competition from Chinese rivals. In the final quarter of 2023, BYD emerged as the leading seller of electric vehicles worldwide, surpassing Tesla. Tesla has once again secured its position in the first half of this year, with a close competition.
Previously, Tesla cars faced restrictions when it came to accessing certain government and military complexes in China, owing to concerns surrounding spying and data security.
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