First crossovers made in Shanghai delivered to China

Tesla has reportedly started delivering locally produced Model Y crossovers to China, marking another milestone for the electric car maker in the world’s largest vehicle market.

Deliveries of the crossover produced in China began Monday, according to the state-run Xinhua news agency. Tesla previously imported Model Y vehicles from its California plant to China. It is not known how many Model Y vehicles were delivered or whether they were delivered to employees or retail customers. Tesla did not immediately respond to the comment.

China – the world’s largest market for electric vehicles – is of crucial importance to Tesla and its growth plans. The company wants to increase its vehicle sales volume from around 500,000 in 2020 to 20 million per year over the next decade.

China has been a driving force in Tesla’s delivery volume in 2020 – the company delivered 499,550 vehicles, an impressive 36% increase from a year earlier, but slightly below its most recent forecast of 500,000 vehicles.

The company began production of the Tesla Model 3 sedan at its Gigafactory in Shanghai, China – its first plant outside the United States – at the end of 2019. Deliveries to Chinese customers of the Model 3 began somewhat earlier. one year. Since then, Tesla CEO Elon Musk has become the richest person in the world thanks to a massive 700% increase in the company’s shares.

Tesla built its $ 2 billion Shanghai plant in just under a year, a quick timeline for the global auto industry. Automakers are establishing local vehicle production to reduce shipping costs and avoid import duties or delays, especially in China.