China added the Tesla Model Y to a list of electric and hybrid car models that a local government can purchase for use as a service car — a major boost to CEO Elon Musk as the billionaire aims to boost Tesla’s sales in the country, according to a report.
Chinese state-owned publication The Paper reported that this is the first time a Tesla model has been made eligible for government purchase in China.
Tesla is the only non-Chinese-owned automaker included on the list for the eastern Jiangsu provincial government. Volvo Cars – which is owned by Chinese company Zhejiang Geely Holding Group – also made the list with its Volvo XC40.
Some Chinese social media users have pushed back on Tesla’s inclusion, questioning whether a foreign automaker should be eligible for government use, according to a CNN report.
It was not specified how many Tesla cars the government was eligible to purchase.
Tesla’s boost may be due in part to a surprise trip in late April by Musk to visit with Chinese Premier Li Qiang – the second-highest ranked political figure in the country.
Qiang then called Tesla a “successful model” of economic collaboration between the US and China.
Tesla cars were previously barred from entering some military and government compounds in China, but the restrictions were lifted after the country’s auto association in April said two of Tesla’s China-made models complied with Chinese data security standards.
Meanwhile, tensions between China and the West are ramping up as the European Commission confirmed it would stick Chinese EVs with additional tariffs.
Tesla – which exports a large number of Chinese-made EVs throughout Europe – requested a separate tariff calculation, according to the commission via a CNN report.
Musk’s EV maker has faced increased competition as more rivals – including Chinese automakers – enter the EV market and demand slows.
Americans purchased about 15% fewer EVs in the first quarter this year compared to the last quarter of last year, according to a Kelley Blue Book report.
This purchase slowdown is likely due to cost and infrastructure barriers as prices remain high and charging stations scarce.
Tesla sales in the US declined by about 13% since the previous year, the report said.
Musk – the richest person in the world with a current $249 billion net worth according to Forbes – was in Beijing in April seeking approval of a Full Self-Driving software rollout.
Tesla plans to introduce the software and build a data center in China to better handle self-driving technologies throughout the country this year, according to Reuters.
Tesla did not respond to requests for comment.
