Tesla has reportedly started delivering locally-produced Model Y crossovers in China, marking another milestone for the electric carmaker in the world’s largest vehicle market.
Deliveries of the China-produced crossover began Monday, according to state-run Xinhua News Agency. Tesla was previously importing Model Y vehicles from its plant in California to China. It’s unclear how many Model Y vehicles were delivered or whether they were delivered to employees or to retail customers. Tesla did not immediately respond for comment.
China – the world’s largest EV market – is critically important to Tesla and its growth plans. The company wants to increase its vehicle sales volume from about 500,000 in 2020 to 20 million annually over the next decade.
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China was a driving force behind Tesla’s delivery volume in 2020 — the company delivered 499,550 vehicles, an impressive 36% increase compared to a year earlier but slightly below its most recent guidance of 500,000 vehicles.
The company started production of the Tesla Model 3 sedan at its Gigafactory in Shanghai, China – its first plant outside the U.S. – in late 2019. Deliveries to Chinese customers of the Model 3 started a little more than a year ago. Since then, Tesla CEO Elon Musk has become the world’s richest person thanks to a massive 700% gain in the company’s stock.
Tesla built its $2 billion Shanghai plant in just under a year, a rapid timeframe for the global automotive industry. Automakers establish local vehicle production to lower shipping costs and avoid import duties or delays, especially in China.
