Tesla Vehicles Reportedly Can be Purchased by China's Government

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published July 05, 2024
11:12 AM EDT
A Tesla Model Y sits on the lot at a Tesla dealership in Austin, Texas.

Brandon Bell / Getty Images

Key Takeaways

  • The Chinese government can buy Tesla vehicles for the first time, according to reports.
  • State-owned news outlet The Paper reported that Beijing can purchase Tesla Model Y SUVs.
  • Tesla shares have rallied this week, and for the first time since early January are near their 2023 closing level.

The Chinese government has reportedly become a buyer of Tesla (TSLA) vehicles.

Reports from Reuters and other publications cited Chinese state-owned media outlet The Paper as saying Teslas were for the first time eligible for government procurement in that country, specifically saying that the starting price of the Model Y comes in below the country's restrictions for SUVs.

It’s been a good week for the electric vehicle (EV) maker, shares of which were up about 0.8% in late morning trading and near-flat for the year.

On Tuesday, the company posted second-quarter deliveries of 443,946, and while that was a 5% decline from a year ago, it beat analysts’ estimates. The next day, Wedbush and Bank of America raised their price targets on the stock.

Wedbush analysts said the deliveries were “a major turning point” for the carmaker after what it called a “very choppy” start to 2024. Bank of America noted that more lower-priced EV models should drive volumes this year.

Tesla YTD stock price chart

TradingView
Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Reuters. "Tesla cars for first time on Chinese government purchase list," July 4, 2024.

  2. The Paper. "Tesla enters government procurement for the first time: Model Y is shortlisted in Jiangsu Provincial Government's new energy vehicle procurement catalog."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.