Tesla CEO Elon Musk speaks at an opening ceremony for Tesla’s Model Y program, made in China in Shanghai on January 7.
Aly Song | Reuters
Tesla started delivering Model Y crossovers produced locally in China, marking another milestone for the electric automaker in the world’s largest vehicle market.
Deliveries of the crossover produced in China began on Monday, according to state news agency Xinhua. Tesla was importing Model Y vehicles from its California plant to China. It is unclear how many Model Y vehicles were delivered or whether they were delivered to employees or retail customers. Tesla did not immediately respond for comment.
China – the largest EV market in the world – is extremely important to Tesla and its growth plans. The company wants to increase its vehicle sales volume from around 500,000 in 2020 to 20 million a year in the next decade.
China was the driving force behind Tesla’s delivery volume in 2020 – the company delivered 499,550 vehicles, an impressive 36% increase over the previous year, but slightly below its most recent 500,000 vehicle guidance.
The company started production of the Tesla Model 3 sedan at its Gigafactory in Shanghai, China – its first factory outside the United States – in late 2019. Deliveries to Chinese customers of the Model 3 began just over a year ago. Since then, Tesla CEO Elon Musk has become the richest person in the world thanks to a massive 700% gain in the company’s shares.
Tesla built its $ 2 billion plant in Shanghai in just under a year, a quick time frame for the global automotive industry. Automakers establish local vehicle production to reduce transportation costs and avoid import duties or delays, especially in China.