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Tesla's Shock Triumph in Shanghai: Why State-Owned Giants Are Flocking to Model Y

Tesla's Shock Triumph in Shanghai: Why State-Owned Giants Are Flocking to Model Y
Tesla's Shock Triumph in Shanghai: Why State-Owned Giants Are Flocking to Model Y

The Tesla Model Y Rear Wheel Drive (RWD) has made an unexpected but significant impact, gaining a foothold in the Jiangsu provincial government’s NEV procurement catalog in China. This milestone marks just the beginning for Tesla in the region, as various state-owned entities in Shanghai have now invested in the all-electric crossover for corporate use.

According to a statement from the Lingang investment promotion service center, several state-owned enterprises in Shanghai have acquired Tesla Model Y units. This move underscores Shanghai's commitment to fostering an inclusive business environment that treats domestic and foreign companies equally. As reported by CNEV Post, the recent purchases are part of Shanghai's broader strategy to modernize its corporate landscape.

Among the prominent state-owned enterprises to make the leap are the Chengtou Xinggang Group and Lingang Investment Holding Group. This endorsement from major organizations is a clear sign of Tesla China's growing influence, particularly considering the government's previous cautious stance toward Tesla vehicles.

Not long ago, Tesla's cars were viewed by the Chinese government as potential security risks. Tesla owners in China even reported being barred from entering government facilities and airports. However, these concerns have largely dissipated following Tesla's construction of a data center within China to store local user data, coupled with Elon Musk’s recent high-profile visit to the country.

The Lingang investment promotion service center also highlighted the concept of “Tesla Speed” and “Shanghai Speed,” exemplified by Giga Shanghai, where projects transition from construction to operation within the same year. The center emphasized that Giga Shanghai has liberated Elon Musk and Tesla from what Musk once described as “production hell,” showcasing Shanghai's exceptional business environment.

The Tesla Model Y offers a compelling package: it's reasonably priced and more than suitable for corporate needs. In Jiangsu, the Model Y met the provincial government’s NEV procurement criteria by being priced under RMB 250,000 ($34,382) and providing a range that far exceeds 400 kilometers (248 miles). The Model Y RWD boasts a CLTC range of 554 kilometers and is available for RMB 249,990 ($34,268) before additional options.

As Tesla continues to make strides in China, the company is on a mission to show that its vehicles can meet, if not exceed, local expectations and standards. With state-owned enterprises now endorsing its products, Tesla’s future in China's electrified landscape appears not just secure, but promising.

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Frequently Asked Questions

The Tesla Model Y RWD has gained a foothold in the Jiangsu provincial government’s NEV procurement catalog and is being acquired by state-owned entities in Shanghai for corporate use.

Prominent state-owned enterprises like the Chengtou Xinggang Group and Lingang Investment Holding Group have acquired Tesla Model Y units in Shanghai.

Shanghai has invested in Tesla Model Y units for corporate use, treating both domestic and foreign companies equally and modernizing its corporate landscape.

The Chinese government previously viewed Tesla cars as potential security risks, leading to restrictions on Tesla owners entering government facilities and airports.

The Tesla Model Y met the criteria by being priced under RMB 250,000 ($34,382) and providing a range exceeding 400 kilometers (248 miles), with a CLTC range of 554 kilometers and a price of RMB 249,990 ($34,268) before additional options.
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