Tesla Model Y is favored by several Shanghai state-owned enterprises, surging nearly 3% before the market opens

According to the information from Zhitong Finance and Economics APP, several state-owned enterprises in Shanghai have placed orders for Tesla's (TSLA.US) Model Y crossover vehicle. The Lingang Investment Promotion Service Center recently announced that several state-owned enterprises, including the City Investment Xingang Group and the Lingang Investment Holdings Group, have purchased a batch of Tesla Model Y vehicles for corporate use.

This victory for Tesla in the Chinese government procurement field further confirms its strong momentum in the Chinese market. As reported by CnEVPost yesterday, the Model Y has been successfully included in the Jiangsu Provincial Government's new energy vehicle procurement catalog, marking the first time for a Tesla model.

The procurement standards in Jiangsu Province are quite strict, requiring SUV models to have a minimum range of at least 400 kilometers and a price not exceeding 250,000 RMB. The entry-level rear-wheel-drive version of the Model Y, priced at 249,900 RMB (approximately $34,370) and with a range of 554 kilometers under CLTC, meets these criteria.

Wedbush Securities holds an optimistic view on Tesla's business in China, noting a positive "slight rebound" in the quarter ending in June. Analyst Dan Ives specifically pointed out that with the strengthening business momentum and price stability in the second half of the year, Tesla's prospects in the Chinese market look promising.

Driven by these positive factors, as of the time of writing, Tesla's stock price rose by 2.75% in pre-market trading on Friday, demonstrating the market's continued confidence in Tesla's business development in China