Tesla cars on Chinese government purchase list for first time: Report

Tesla's best-selling model Y was part of a list of electric and plug in hybrid models that a local government in China can purchase as a service car, Reuters reported citing an official Chinese media outlet, the Paper.

This marks the first time that the American company's cars have been made eligible for government purchases in China, the Paper added.

Neither the government nor the Chinese media specified the number of Model Y cars that the Jiangsu provincial government could buy.

As demand for Chinese cars abroad is overshadowed by the prospect of tariffs and domestic competition intensifies, Tesla's deliveries of China-made vehicles fell 9% in the first half compared to the same time in 2023, the newswire reported. 

Tesla chief Elon Musk had visited China in late April to meet Premier Li Qiang. 

China has increased its support for Tesla, which plans to build a data training centre and roll out its Full Self Driving software in the country this year, despite ongoing tensions with the United States over tech rivalry, Reuters reported.