A Tesla store in Beijing Photo: IC

Tesla is reportedly returning its server for Chinese customer data from the US to China, in the latest effort by the US electric carmaker to enhance services in the Chinese market. Its sales in China have largely outperformed US markets. 

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 recruiting for a number of IT positions, including data center engineers and data base administrators. 

Tesla had not confirmed the news by press time. 

Tesla is shifting its server back to China at a time when its sales in the country are largely outperforming 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 at 1,447 in May, down from 6,260 in April. 

Tesla's shares have doubled in roughly three months to nearly $1,000 per share. 

Wedbush Securities analyst Dan Ives said that Tesla's shares could roar even higher as the massive Chinese market is showing clear signs of a demand spike. 

Liu Dingding, an independent tech analyst, told the Global Times that Tesla's decision to move Chinese client data back to China is a gesture showing its aim for long-term development in China. The move will win the company more trust from Chinese clients and will enhance its services quality by increasing network service speeds. 

Liu also said China is currently on a trend of rolling out data security laws, and it is far-sighted for overseas companies to set up locally based servers. 

Tesla has joined a parade of tech 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.