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Tesla (NASDAQ:TSLA) traded higher on Friday amid reports that several state-owned entities in Shanghai have placed orders for Model Y crossovers as part of the city’s efforts to optimize the business environment and demonstrate equal treatment for domestic and foreign companies.
State-owned enterprises, including Chengtou Xinggang Group and Lingang Investment Holding Group, have recently purchased a number of Tesla Model Ys as service vehicles for corporate use, according to the Lingang investment promotion service center. The official statement indicated that the purchases were the Lingang special area’s response to implementing equal treatment of domestic and foreign enterprises in government procurement activities.
Local media reports also indicated that Tesla (TSLA) cars have been made eligible for a Chinese local government purchase list.
Wedbush Securities thinks the electric vehicle maker saw a “mini rebound” in the June quarter in China. Analyst Dan Ives pointed to momentum with the China business into the second half, along with pricing stabilization that has helped Tesla (TSLA).
Shares of Tesla (TSLA) were up 1.75% in premarket trading on Friday.