The Tesla China user data and certification service will be moved to China from the United States, Shanghai Securities News reported on Tuesday.

Moving the server to China, Tesla can better serve local customers with improved service response speed and reliability by solving practical problems such as unstable connections in the Tesla app. It is also appropriate to move the data to China as Chinese customer data is relatively sensitive in a sense, said Mei Songlin, a senior analyst for the automobile industry.

To meet the changing landscape of China's new energy vehicle production and sales, Tesla is recruiting data center engineers, storage engineers, database engineers and other information technology operation and maintenance personnel.

Data from the China Passenger Car Association (CPCA) revealed sales of the domestically manufactured Tesla Model 3 reached 11,095 in May, taking the crown on the list of single-month sales of new energy vehicles in China.

However, impacted by the ongoing COVID-19 pandemic, the performance of Tesla in its US headquarters is not optimistic.

Statistics indicate Tesla delivered 6,260 vehicles in California in April and 1,447 in May with a sharp decline due to the novel coronavirus.

With over 10,000 sales in a single month, the Chinese market has been increasingly important for Tesla, and the key for the rise or fall of Tesla stocks is the rebounding performance of Tesla's sales in China, according to Dan Ives, an analyst for WedBush Securities.