Several state-owned enterprises in Shanghai, China's financial hub, have acquired Tesla's (NASDAQ:TSLA) best-selling Model Y for use as service vehicles, according to a statement released by the local government on Friday.

The purchase aligns with an "active response" to initiatives promoting equal treatment of Chinese and foreign companies in government procurement processes.

This initiative is particularly significant in the Lingang Special Area, home to Tesla's largest manufacturing facility.

The inclusion of Tesla cars on a Chinese local government purchase list was reported by local media on Thursday, signaling a broader acceptance and integration of foreign-manufactured electric vehicles in government operations.