Tesla Model Y Added to Chinese Government Purchase List for First Time

Tesla's popular Model Y has been included in a list of electric and plug-in hybrid vehicles eligible for purchase by a local government in China, as reported by the official Chinese media outlet The Paper on Thursday. This marks the first occasion that Tesla's vehicles have been approved for government procurement in China.

The eastern Jiangsu provincial government announced 56 batches of new energy vehicle procurements for use by party, government, and public organizations on June 6. Among these were the Model Y, manufactured at Tesla's Shanghai factory, and Volvo Cars' XC40. The remaining 54 batches consisted entirely of Chinese-branded electric and hybrid vehicles. It is noteworthy that Volvo Cars is owned by the Chinese automaker Zhejiang Geely Holding Group.

Specific details regarding the number of Model Y cars that the Jiangsu provincial government might purchase were not disclosed by the government or the Chinese media.

Previously, Tesla's cars were restricted from entering certain government and military compounds in China. However, these restrictions were lifted after Tesla received an endorsement from China’s top auto industry association, which stated in April that the data collection by Tesla fleets in China was compliant with regulations.

Despite an increase in support from China, Tesla’s deliveries of China-made vehicles fell by 9 percent in the first half of the year compared to the same period in 2023, amid rising demand for Chinese cars abroad and intensified domestic competition. Nevertheless, Tesla's CEO Elon Musk's visit to China in late April to meet Premier Li Qiang appears to have been beneficial.

In addition to the recent support, Tesla plans to establish a data training center and introduce its Full Self-Driving software in China this year, despite ongoing tech rivalry tensions between China and the United States.