A number of state-owned enterprises in Shanghai have ordered Tesla's Model Y crossovers.
The Zhitong Finance App learned that several state-owned enterprises in Shanghai have ordered Tesla (TSLA.US) Model Y crossovers. The Lingang Investment Promotion Service Center recently announced that several state-owned enterprises, including CITU Xinggang Group and Lingang Investment Holding Group, have purchased a batch of Tesla Model Y's for corporate use.
Tesla's victory in the Chinese government procurement field further confirms its strong momentum in the Chinese market. As CnevPost reported yesterday, the Model Y has been successfully selected for the Jiangsu Provincial Government's NEV procurement catalogue. This is the first time among Tesla models.
Jiangsu Province's procurement standards are quite strict, requiring SUV models to have a range of at least 400 kilometers and a selling price of no more than 0.25 million yuan. The entry-level rear-wheel drive version of the Model Y met these requirements with a starting price of RMB 249,900 (approximately US$34,370) and a CLTC range of 554 km.
Wedbush Securities is optimistic about Tesla's business in China and believes there was a positive “slight rebound” in the June quarter. Bank analyst Dan Ives specifically pointed out that with the strengthening of business momentum and price stabilization in the second half of the year, Tesla's prospects in the Chinese market are promising.
Driven by these positive factors, Tesla's stock price rose 2.75% in pre-market trading on Friday as of press release, showing the market's continued confidence in Tesla's business development in China.