Tesla Added To Chinese Government Fleet, Stock Sees Slight Gains

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 In a groundbreaking move, Tesla (Nasdaq: TSLA) has been added to a Chinese government purchase list for the first time, marking a significant milestone for the American electric vehicle manufacturer in the world’s largest EV market.The government of Jiangsu province in eastern China has included Tesla in its official purchase catalog, making it the only foreign-owned EV brand available for procurement by government agencies and public groups in the region. This development comes as Tesla’s relationship with China strengthens, despite ongoing trade tensions between the United States and China.
 Tesla Included as Official Vehicle in Chinese Government FleetIncluding Tesla in the Jiangsu government’s purchase catalog represents a major shift in China’s approach to foreign-made vehicles for official use.The Shanghai-made Model Y, listed at 249,900 yuan ($34,377), is described as “a domestic car, not imported” by a government employee, highlighting Tesla’s significant manufacturing presence in China. This move not only showcases the growing acceptance of Tesla in China’s official circles but also has the potential to boost the company’s sales and reputation in the Chinese market.Tesla’s success in China has been substantial. In 2023, the company manufactured about 947,000 cars in the country, most of which were sold locally.China accounts for over half of the world’s total EV sales, and Tesla derived nearly a quarter of its total revenue from the Chinese market last year. The decision to include Tesla on the government purchase list comes after the company’s cars passed China’s data security requirements in April 2024, lifting previous restrictions on Tesla vehicles entering some government and military complexes.This development comes against a backdrop of increasing global trade tensions, particularly in the EV market.The European Commission recently confirmed additional tariffs of up to 37.6% on EV imports from China, seen as a move to protect against “unfairly” subsidized Chinese cars. As a major exporter of China-made EVs to Europe, Tesla has requested a separate tariff rate calculation and currently faces an average 20.8% additional tariff as part of a group of companies cooperating with the EU’s investigation.
 Tesla Stock Performance and Financial OutlookAs news of Tesla’s inclusion in the Chinese government purchase list broke, the company’s stock price saw a significant boost. In pre-market trading, Tesla’s stock price reached $250.58, up $4.19 (1.70%) from the previous close of $246.39.The company’s market capitalization stands at an impressive $785.787 billion, cementing its position among the largest auto manufacturers globally. Tesla’s P/E ratio (TTM) of 63.02 and EPS (TTM) of $3.92 reflect the market’s high expectations for the company’s future growth.More By This Author:Bitcoin Dips Below $60k, But Analysts Eye Potential Rise To $100kIs Now The Turning Point For Tesla’s 2024? Headphone Maker Koss’s Stock Surges 250%+ in Echo of 2021 Meme Stock Frenzy