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By Bloomberg

Tesla Motors Inc. said its cars were approved for a program in Shenzhen, China, that sets aside license plates for new-energy vehicles, giving the automaker a boost in a market where sales have trailed expectations.

Starting from today, buyers of Tesla’s Model S electric sedan can apply for license plates through a program that sets aside 20,000 tags annually in the southern city bordering Hong Kong. Regular license plates in Shenzhen are awarded through a lottery and auction system to curb pollution, making them difficult to obtain.

While the approval helps Tesla compete with China’s BYD Co., an electric-car maker that’s based in Shenzhen, Tesla buyers still aren’t entitled to government incentives for new- energy vehicles, such as sales-tax exemptions and subsidies. The Palo Alto, California-based company, led by billionaire Elon Musk, said last month it’s cutting jobs in China after sales fell short of initial targets.

BYD declined as much as 4.3 percent in Hong Kong trading today, compared with a 0.3 percent drop in the city’s benchmark Hang Seng Index.

Tesla started delivering cars in China, the world’s largest auto market, last year. The company has nine stores and service centers in six Chinese cities and has tied up with companies including China Unicom and Soho China Ltd. to build charging stations.