Introduction

In July 2024, Tesla's Model Y rear-wheel-drive version successfully entered the procurement catalog for new energy vehicles of the Jiangsu Provincial Government with a quoted price of 249,900 yuan.

This price of Model Y precisely aligns with the maximum limit of 250,000 yuan set by the government procurement, successfully "edging" into the catalog.

The officials expressed a positive attitude towards this.

A relevant responsible person from the Jiangsu Provincial Government Procurement Center said, "We welcome all enterprises that meet market regulations and procurement requirements to participate in competition. Tesla's inclusion is a recognition of its technology and service, as well as a respect for the principle of fair competition in the market."

Some might argue that just being included in the local government's procurement catalog does not mean it has been purchased, so is it really necessary to react so strongly to this matter?

It is indeed necessary. Actually, this matter is far from as simple as it seems on the surface, and its impact will gradually be amplified like the butterfly effect.

I will analyze the impact of "Tesla's inclusion in the government procurement list" from three aspects.

1. Tesla Takes Another Step Forward in China, Adding to Its Success

Tesla's inclusion in the Jiangsu government procurement is another important milestone after its data compliance.

After this, Tesla will add another market segment in China: government official vehicles.

As a catfish, Tesla was the first to be allowed to build a factory solely with foreign capital. Shanghai provided land and loans for the factory construction, and opened the green light in terms of policies. It only took 7 months from the start of construction to production.

Before April 28 of this year, Tesla's capabilities in China's intelligent driving were limited and restricted, and it was banned from entering some public places.

On April 28, Musk quickly came to China and stayed for 44 hours.

During these 44 hours, Musk was successively received by leaders from the Ministry of Foreign Affairs, the Ministry of Industry and Information Technology, and the Ministry of Commerce. He visited the Shanghai Gigafactory late at night to encourage employees and was received by the Secretary of the Shanghai Municipal Party Committee, without a moment's rest.

During this period, Musk also had a meal with the founder of CATL and rode in a Model X to visit government departments, among other things, which were widely circulated.

After this, Tesla passed all four requirements for automotive data security, becoming the only foreign enterprise that meets compliance requirements.

2. Further Opening of the Automotive Market, Intensifying Competition

China's automotive industry has actually been in a protected state since the reform and opening up. Foreign capital entering the automotive industry could only adopt a joint venture model, which finally began to loosen in recent years.

The booming development of China's new energy industry can be seen as overtaking at a curve. Before other established automotive powers had time to react, China's new energy vehicles quickly rose and took the lead in the world.

Tesla's introduction played a crucial role in this process. At that time, Tesla was also in turmoil, but the opening of the Chinese market and the olive branch extended by the Chinese government saved it from danger. They helped each other, with Tesla becoming the world's largest auto company by market capitalization, and China's new energy vehicle industry defeating Japan to become the world's first.

The data compliance at the end of April this year paved the way for Tesla's FSD to land, and the next stage of intelligence for new energy vehicles is about to enter the red ocean, leaving little time for domestic automakers.

The opening of government vehicles to Tesla is undoubtedly a further loosening of restrictions on imported cars and foreign brands, which not only increases the variety of official vehicles but also promotes healthy competition in the market.

However, this may not be good news for domestic companies that rely on official vehicles to maintain sales. The days of easy profits may be over.

3. Enhancing China's International Image and Further Improving the Business Environment

Unlike the US's hostile acts of surrounding, blocking, forming alliances to sanction China, and raising tariffs, we have consistently adhered to reform and opening up, as well as the Belt and Road Initiative.

Tesla's inclusion in government vehicles further highlights our open attitude.

Conclusion

Tesla's successful inclusion in the Jiangsu Provincial Government's procurement catalog for new energy vehicles marks a further consolidation of its position in the Chinese market.

This event not only reflects Tesla's strength in technology and service but is also a vivid manifestation of China's opening-up policy.

With the continuous opening of the automotive market, domestic and foreign brands will compete on the same stage, driving the industry towards higher quality and more intelligent development.

Tesla's inclusion undoubtedly provides a positive signal for other foreign enterprises and also brings new challenges and opportunities for domestic automakers.

This move will help optimize China's automotive industry structure, enhance international competitiveness, and further promote the prosperity and development of the global automotive industry.