Tesla Ing (NASDAQ: TSLA) began delivering Model Y vehicles in China on Monday.
What happened: The company, led by Elon Musk, posted photos of customers delivering mid-size electric sports utility vehicles on Twitter.
Oh! Model Y deliveries in China have officially started pic.twitter.com/fG5aax1k2b
– Tesla (@Tesla) 18 January 2021
According to Tesla, the first deliveries in Shanghai will be followed by other cities, reports Xinhua – a Chinese government news agency.
Why it matters: The Model Y was offered for sale in China at the beginning of 2021 and, according to Electrek, received enough orders to deplete supplies for the first three months of 2021.
See also: Mass quantity of Tesla Model Y vehicles spotted at Gigafactory Shanghai, ready for delivery
Analysis expects that the sports utility vehicle will increase Tesla’s Chinese sales, and that this year there will be a disruption in the car market in the East Asian country.
The price of the vehicle is less than a tenth of similar gas-powered luxury cars Daimler AG (OTC: DDAIF), Bayerische Motoren Werke AG (OTC: BMWYY), and Volkswagen AG (OTC: VWAGY), according to Reuters.
The vehicle also threatens the growing dominance of home-based businesses such as EV Nio Ing (NYSE: NIO), Xpeng Inc. (NYSE: XPEV), BYD Company Ltd. (OTC: BYDDF), and Li Auto Ing (NASDAQ: LI).
Price action: Tesla shares closed nearly 2.2% lower at $ 826.16 on Friday and fell nearly 0.3% in the after-hours.
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