Tesla in China

Tesla Approved as Official Chinese Government Vehicle

For the first time, Tesla has been included in a Chinese government purchase list, as reported by state-owned media outlet Paper.cn.

Tesla is the only foreign-owned electric vehicle (EV) brand featured in the procurement catalogue released by the government of Jiangsu province in eastern China. Other brands on the list include Volvo, owned by China’s Geely, and the state-owned SAIC.

This inclusion allows government agencies and public groups in the province to procure Tesla cars for official use, reflecting the strong relationship between China and Elon Musk’s company.

The news has sparked widespread discussion on Chinese social media, with some users questioning the appropriateness of foreign cars being used by the government. To address these concerns, the Jiangsu government clarified that the Tesla model listed is “a domestic car, not imported,” according to a report by the state-owned National Business Daily.

Tesla, which operates a massive gigafactory in Shanghai, produced approximately 947,000 cars in China in 2023, with the majority being used locally. The Shanghai-made Tesla Model Y is listed at 249,900 yuan ($34,377) on the government’s purchase catalogue.

China is a crucial market for Tesla, accounting for more than half of the world’s total EV sales. In 2023, nearly a quarter of Tesla’s total revenue came from China. However, Tesla faces increasing competition from local rivals, such as BYD, which briefly overtook Tesla as the top EV seller in late 2023.

Previously, Tesla cars were restricted from entering some government and military complexes in China due to concerns over spying and data security. These restrictions were lifted in April after a top auto association announced that Tesla’s cars had met China’s data security requirements. The announcement coincided with Elon Musk’s visit to Beijing, where he met with Premier Li Qiang, who praised Tesla as a “successful model” of US-China collaboration.

EU Tariffs on Chinese EVs

In a related development, the European Commission confirmed that it would impose additional tariffs of up to 37.6% on imports of electric vehicles made in China starting Friday. These tariffs are intended to counteract what the EU sees as unfair government support for Chinese car manufacturers.

Tesla, a significant exporter of China-made EVs to Europe, has requested a separate tariff rate calculation. Currently, Tesla faces an average additional tariff of 20.8% as part of a group of companies cooperating with the EU’s investigation.

Tesla did not respond to requests for comment.

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