Tesla Approved for Chinese Government Purchases

Tesla Approved for Chinese Government Purchases

Tesla Inc. has been included in a government procurement list by the Jiangsu provincial government in East China, marking the company's first entry into a local government purchasing list in the country. This move includes Tesla's Model Y among a range of new energy vehicles eligible for government purchase. The list also features domestic models from automakers such as Volvo Cars, which is owned by Zhejiang Geely Holding Group, and other local brands.

The inclusion of Tesla's Model Y, produced in the Shanghai Gigafactory, comes as the company plans to test its robotaxi and expand its Full Self Driving software in China. This marks a shift from previous restrictions that banned Tesla vehicles from entering certain government and military compounds due to security concerns over data collection. The Jiangsu government's procurement list, covering the 2024-2025 budget period, includes the Model Y priced at RMB 249,900 ($34,368), meeting criteria for a pure electric range of over 400 kilometers.

This development follows China's increased support for Tesla despite ongoing tech rivalry with the United States. Data from the Ministry of Finance indicates that China's government procurement reached approximately 3.5 trillion yuan ($492.96 billion) in 2022. Tesla's local operations have also been compliant with China's data security standards, which was a significant factor in its recent inclusion in the procurement catalog.


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