Tesla (TSLA-US) said Monday (19) at the Shanghai Auto Show that the company will complete its local data center in China in Q2 (April to June) this year. The move is also supposed to address the concerns of the Chinese Communist Party authorities.
The news came to light after Chinese media interviewed Tesla’s local executives. The reasoning behind this is that the Chinese authorities have criticized Tesla for transferring partial data from local vehicles in China to the U.S., which is why this measure was taken.
The Chinese authorities are obliged to submit immediate data on the location of new energy vehicles, such as electric vehicles (EVs), and battery-related data to the relevant authorities. However, Tesla is suspected to have failed to comply with the regulations, and some units of the Chinese military and government have restricted the use of Tesla vehicles.
Tesla has been starting production of the Model 3 in Shanghai, China, since late 2019, and production has now expanded to include the Model Y.
According to Chinese media, Tesla executives have said that in the future they will conduct zero-to-whole vehicle development operations in China, and that vehicles developed in China will also be sold in the global market.
According to British LMC Automotive’s survey data, Tesla will sell 145,000 units in China in 2020, which is about three times more than in 2019. In terms of sales of new energy vehicles in China, Tesla has climbed to third place in a short period of time behind Shanghai Automotive Group and BYD. Many wealthy and middle-class people who cannot travel abroad are turning to locally produced and affordable Teslas in China.
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