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Tesla Model Y Approved for Official Use in China

ByHuey Yee Ong

Jul 7, 2024

Tesla Model Y Approved for Official Use in China

Tesla has achieved a notable milestone in China as its Model Y has been added to a government procurement list in Jiangsu province, marking the first time Chinese government workers can choose a Tesla vehicle for official use.

This inclusion on the list, reported by the state-owned The Paper, highlights Tesla’s growing acceptance within the Chinese market, where it is the sole foreign-owned electric vehicle company featured.

The significance of Tesla’s inclusion extends beyond mere listing; it reflects the company’s strategic efforts to align with Chinese regulations and market preferences. Operating a Gigafactory in Shanghai, Tesla ensures that all self-driving data collected from its Chinese customers remains within the country, adhering strictly to local data privacy laws.

This development occurs amidst ongoing tensions between China and the U.S., yet Tesla, under the leadership of CEO Elon Musk, continues to deepen its commitments in China.

Notably, Tesla has recently navigated regulatory challenges, securing a deal with Chinese authorities to introduce its latest self-driving features. Moreover, the collaboration with Baidu for access to high-resolution maps emphasizes Tesla’s integrated approach to innovation and market expansion in China.

Despite these advancements, Tesla faces stiff competition from local EV manufacturers like BYD, which often compete aggressively on pricing. This competitive pressure is evident in Tesla’s recent shipment figures from its Shanghai factory, which saw a significant drop of 24.2% year-over-year, as reported by China’s Passenger Car Association.

Featured Image courtesy of Qilai Shen/Bloomberg

Huey Yee Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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