On Monday, SHANGHAI, Tesla Inc. launched the first assembled Model Y compact crossover vehicles in China, the latest milestone in the push of the American company to the world’s largest electric car market.
He attended a Monday event at a Tesla store in Shanghai to mark the start of deliveries and received his car, a local Model Y buyer said. Tesla said via Twitter on Monday that “Model Y deliveries have officially begun in China.”
Tesla, which broke ground two years ago at its Shanghai factory, rushed there to start manufacturing cars and expand capacity. Locally, producing cars lets the electric vehicle manufacturer based in Palo Alto, Calif. save on shipping costs and escape import duties for the Chinese market.
After the Model 3 sedan, which the company began delivering a year ago in China, the Model Y is the second Tesla vehicle that the EV manufacturer produces in Shanghai, marked by a visit to the plant by Chief Executive Elon Musk.
Model Y of Tesla in China
Tesla uses a new Model Y product introduction strategy, as we have previously stated. Unlike previous vehicle initiatives, which were introduced in various markets with vehicles imported from Tesla’s Fremont factory in California, Tesla only launches Model Y in new markets after the vehicle is assembled there.
Tesla has been expanding the Shanghai Gigafactory for the past nine months to prepare for the launch of electric SUVs.
In scale, the plant has more than doubled.
Tesla released new images of the upcoming Model Y Shanghai factory in October.
In November, the automaker also received approval from the Ministry of Industry & Information Technology for the Model Y made in China.
Finally, over the last few weeks, Tesla started manufacturing the Model Y at Gigafactory Shanghai, and the automaker updated the online configurator with the production version only last week, indicating that deliveries would start this month.
Tesla also updated the price of electric SUVs with its launch on the Chinese market, which now starts at 339,900 yuan ($52,000) for the Long Range Dual Motor version, and the Model Y Output version will start at 369,900 yuan ($56,600).
A few days after the sale, we heard that the first quarter of Model Y electric SUVs in China were sold out by Tesla.