A Tesla store in Beijing Photo: IC

Tesla is reportedly returning its Chinese customer data from a server in the US to one located in China, the latest effort by the US electric carmaker to enhance services in the Chinese market, which rewarded it with staggering sales despite the coronavirus outbreak. 

According to a report from cnstock.com, Tesla will move its Chinese client data and verification services from the US back to China. Tesla China is also recruiting for a number of information technology positions, including data center engineers and data base administrators. 

Tesla did not respond to an interview request by the Global Times. 

Liu Dingding, an independent tech analyst, said that Tesla's decision to move its Chinese client data back to China is a gesture showing the importance it places on long-term development in China. The move will win the company more trust among Chinese clients and enhance its services quality by increasing network service speeds. 

Song Jin, senior analyst at Analysys, said that with the development of smart automobiles and the Internet of Vehicles, car companies will capture more private user data with technologies like facial and voice recognition. This will push companies like Tesla to make forward-looking arrangements for data localization, a trend in many countries including China.

Liu also said China might roll out data security laws, and it is far-sighted for overseas companies to set up locally based servers. 

Tesla has joined the ranks of technology companies building facilities that store online data closer to customers. Apple, for example, opened a data center in Southwest China's Guizhou Province in 2017.

Tesla is shifting its server back to China at a time when its sales in the country are massively outperforming those in the US market. In May, Tesla sold 11,095 made-in-China Model 3 cars, topping the list of new-energy vehicle sales for that month. In comparison, Tesla's sales in California were only 1,447 in May, down from 6,260 in April. 

With its sales success in China, Tesla's share prices doubled over the past three months to nearly $1,000. Wedbush Securities analyst Dan Ives said that Tesla's shares could roar even higher as the huge Chinese market is showing clear signs of a demand spike. 

"Tesla to the new-energy vehicle (NEV) market is just like Apple to the mobile phone market. Because of its product reputation and price advantage backed by its localization strategy in China, I believe Tesla's market share in China will continue to expand," he told the Global Times on Tuesday. 

As the NEV industry matures in China, domestic NEV brands will rise too, and some will become strong competitors to Tesla, Song said. In the long term, China's NEV market will be carved up by several big brands including Tesla, Song added.