On January 7, Tesla CEO Elon Musk speaks at an opening ceremony of the China-made Model Y program in Shanghai.
Aly Song | Reuters
Tesla has reportedly started delivering locally produced Model Y crossovers to China, marking another milestone for the world’s largest electric vehicle maker in the world.
Deliveries of the crossover produced in China began on Monday, according to state news agency Xinhua News. Previously, Tesla imported Model Y vehicles from its California plant in China. It is unclear how many Model Y vehicles were delivered or whether they were delivered to employees or retail customers. Tesla did not respond immediately to comment.
China, the world’s largest electric vehicle market, is of crucial importance 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.
China was the 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 the latest guide of 500,000 vehicles.
The company began production of Tesla’s Model 3 sedan at its Gigafactory in Shanghai, its first plant outside the US, in late 2019. Deliveries to Chinese Model 3 customers began just over a year ago . Since then, Tesla CEO Elon Musk has become the richest person in the world thanks to a huge 700% gain in the company’s shares.
Tesla built its $ 2 billion Shanghai plant in just under a year, a fast-paced time for the global auto industry. Automakers are setting up local production of vehicles to reduce shipping costs and avoid import duties or delays, especially in China.