Tesla CEO Elon Musk speaks on January 7 during an opening ceremony for the Tesla-made Model Y program in Shanghai.
Aly Song | Reuters
Tesla has reportedly started delivering locally manufactured crossover model Y in China, which is another milestone for the electric car manufacturer in the world’s largest vehicle market.
According to the state-run Xinhua News Agency, delivery of the China-made crossover began Monday. Tesla previously imported Model Y vehicles from its California plant to China. It is unclear how many Model Y vehicles were delivered and whether they were delivered to employees or retail customers. Tesla did not immediately respond for comment.
China – the world’s largest EV market – is very important to Tesla and its growth plans. The company wants to increase its sales volume of vehicles from about 500,000 in 2020 to 20 million per year in the next decade.
China was a driving force behind Tesla’s delivery volume in 2020 – the company delivered 499,550 vehicles, an impressive 36% increase over a year earlier, but slightly lower than the latest extension of 500,000 vehicles.
The company began production of the Tesla Model 3 sedan at the end of 2019 at its Gigafactory in Shanghai, China – its first factory outside the US. Deliveries to Chinese customers of the Model 3 began a little over a year ago. Since then, Tesla CEO Elon Musk has become the richest person in the world thanks to a massive 700% profit in the company.
Tesla built its $ 2 billion Shanghai plant in just under a year, a fast-paced time frame for the global automotive industry. Car manufacturers are establishing local vehicle production to reduce shipping costs and avoid import taxes or delays, especially in China.