For the first time, Chinese government workers will be able to purchase Tesla’s Model Y for official use.
Specifically, officials in eastern China’s Jiangsu province included the Model Y in a government procurement list, which was also reported in the state-owned publication The Paper.
As the only foreign-owned electric vehicle company on the list, Tesla’s inclusion is a sign that the company’s efforts to win over the Chinese government are paying off. Tesla operates a Gigafactory in Shanghai, and it says self-driving data from its Chinese customers is fully stored and processed within China.
In the midst of broader tensions between China and the U.S., Tesla CEO Elon Musk stands out among American executives for his commitment to the Chinese market (which is, after all, the largest EV market in the world). The company cleared a different hurdle earlier this year after reaching a deal with Chinese regulators to launch its newest self-driving features in the country. It’s also partnering with Baidu to get access to the Chinese company’s high-resolution maps.
Tesla’s good news comes as the company faces intense competition from Chinese EV companies such as BYD, particularly around price. June shipments from its Shanghai factory fell 24.2% year-over-year, according to China’s Passenger Car Association.
