Tesla China user data and authentication services are set to migrate from the US to China, Shanghai Securities News quoted Tesla insiders as saying.

In line with this, Tesla China is hiring data center engineers, storage engineers, database engineers and a range of other information technology operations and maintenance positions.

According to the report, Tesla China's user data and authentication services will be migrated from the United States to China, i.e., the servers will be moved to China, thus solving problems such as unstable Tesla App connections.

According to the China Passenger Car Association (CPCA) sales data for May, China-made Tesla Model 3 sales reached 11,095 units last month, topping the monthly sales charts for new energy vehicles in China.

From January to April, Nio sold 6,951 vehicles, Lixiang sold 5,783 vehicles, Xpeng sold 3,565 vehicles and WM-Motor sold 3,284 vehicles.

Industry insiders said that at present Tesla is obviously standing out in China's new energy vehicle market.

However, affected by the new coronavirus pneumonia epidemic, Tesla's situation in its home base in the U.S. market is not optimistic.

Data show that Tesla delivered 6,260 cars in California in April; May sales in California fell sharply, only 1,447 cars were delivered.

The Chinese market, which sells more than 10,000 cars a month, is undoubtedly becoming more and more important to Tesla.

In a report to clients, Wedbush Securities analyst Dan Ives said, "The key to the current rise and fall of Tesla stock remains the rebound in its sales in China. This is critical for the company to reach its overall goal of delivering 1 million electric vehicles per year within a few years."

Against this backdrop, Tesla's strategy in China is changing as well. Tesla China user data and authentication services will be migrated from the U.S. to China, i.e., the servers will be moved to China, thus addressing Tesla The app connection is unstable and other issues.

According to Mei Songlin, a senior auto industry analyst, Tesla's initiative to migrate Chinese user data has multiple considerations.

On the one hand, the server is located in China, which can better serve local customers, improve the response speed and reliability of service, and solve the real-life problems such as unstable Tesla App connection.

On the other hand, Chinese user data is in a sense more sensitive data and it is more appropriate to migrate to China.