Tesla Model Y Approved For Government Procurement in China

The Model Y has become the first Tesla vehicle to be approved for government procurement in China, after being included in Jiangsu Province’s new energy vehicle (NEV) procurement catalogue this week.

The inclusion of the Model Y in the Jiangsu Provincial Government’s procurement list signifies a major milestone for Tesla. This development comes at a time when China is emphasizing its commitment to opening up its markets and enhancing trade relationships, even as the U.S., Europe, and Canada, are either implementing tariffs on Chinese-made EVs, or considering doing so.

The procurement framework sets clear criteria for the selected vehicles. For SUVs, the price cap is set at ¥250,000, with a requirement for an electric range exceeding 400 km (248 miles). The Tesla Model Y Rear-Wheel Drive (RWD), priced at ¥249,900 and offering a CLTC range of 554 km (344 miles), easily meets and exceeds these requirements. (via Global Times)

Historically, Tesla has faced scrutiny from Chinese authorities regarding data security concerns. The automaker was previously banned from entering government agencies and military facilities. However, this stance has softened following a visit by Tesla CEO Elon Musk to China in April 2024.

During his visit, Musk met with Chinese Premier Li Qiang and received assurances regarding automotive data security, paving the way for Tesla’s Full Self-Driving (FSD) system to be implemented in China. Tesla recently received approval to test FSD on 10 cars in China.

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