Tesla eligibility for Chinese state purchases could clear way for self-driving approval

US electric vehicle (EV) maker Tesla’s cars can now be bought by Chinese government departments in a move that analysts say is a prelude to the company unveiling more technologically advanced features in the world’s largest automobile market.

The company’s Model Y, its bestselling vehicle, appeared on a procurement list released last month for new energy vehicles (NEVs) for 2024 and 2025 on the website of Jiangsu province’s government.

Tesla’s vehicles were earlier banned from use by government agencies, state-owned enterprises and military sites due to data security concerns.

In April, Tesla became the first foreign carmaker to win approval from Chinese data security regulators, with the China Association of Automobile Manufacturers (CAAM) adding its Model 3 and Model Y to a list of vehicle models whose data use meets national security standards, alongside vehicles from Chinese EV giants BYD, Li Auto and Nio.

Tesla’s founder Elon Musk also met with Chinese Premier Li Qiang in Beijing in April, with the Premier calling Tesla’s development in China “an example of success” that was a result of US-China cooperation, according to China’s state television.

Tesla has also been actively strengthening its ties with the Chinese government by setting up a Gigafactory in Shanghai in 2019, and building a data centre in Shanghai to localise its data storage in 2021. It has been a front-runner in China’s premium EV segment since the Gigafactory began producing Model 3 vehicles at the end of 2019.