Tesla CEO Elon Musk speaks at an opening ceremony for the Tesla China-made Model Y program in Shanghai on Jan. 7.
Aly Song | Reuters
Tesla has reportedly started supplying locally-produced Model Y crossovers in China, a new milestone for the electric carmaker in the world’s largest car market.
According to the state-run Xinhua News Agency, delivery of the China-produced crossover began on Monday. Tesla previously imported Model Y vehicles from its California factory to China. It is unclear how many Model Y vehicles have been delivered and whether they have been delivered to employees or retail customers. Tesla did not immediately respond to comment.
China – the world’s largest EV market – is critical to Tesla and its growth plans. The company aims to increase its car sales volume from approximately 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 from a year earlier, but slightly below its latest expectation of 500,000 vehicles.
The company began production of the Tesla Model 3 sedan in late 2019 at its Gigafactory in Shanghai, China – the first factory outside the US – in late 2019. Deliveries to Chinese customers of 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% rise in the company’s stock.
Tesla built its $ 2 billion plant in Shanghai in just under a year, a fast time frame for the global auto industry. Car manufacturers are setting up local vehicle production to reduce shipping costs and avoid import duties or delays, especially in China.