BUSINESS

Tesla has started deliveries of the Chinese-made Model Y

Jan 19, 2021, 6:30 AM
Tesla china...
SHANGHAI, CHINA - JANUARY 18: A worker prepares to deliver a new China-made Model Y compact crossover vehicle at a Tesla showroom on January 18, 2021 in Shanghai, China. (Photo by VCG/VCG via Getty Images)
(Photo by VCG/VCG via Getty Images)

(CNN) — Tesla has begun rolling out locally made Model Y crossover vehicles in China, reaching an important milestone in the world’s largest auto market.

The electric carmaker announced the news on Twitter on Monday, releasing photos of the SUV being purchased from a company showroom.

The Model Y is the second vehicle Tesla has made and sold in China, after deliveries of the Model 3 kicked off last year. Both lines are being produced at the company’s sprawling Gigafactory in Shanghai, where manufacturing started in 2019.

The Model Y starts at 339,900 yuan ($52,400) for the “long range” version, and 369,900 yuan ($57,000) for the “performance” version.

Deliveries began Monday in cities including Shanghai, Hangzhou and Wuhan, the company said in a Chinese social media post. To help customers feel more comfortable, staff also packed a “virus prevention” kit in the new vehicles, which included bottles of hand sanitizer, it added.

Going big in China

China has increasingly become a critical part of Tesla’s global strategy, with CEO Elon Musk once calling its factory there a “template for future growth.”

In 2019, the company beat its own deadline to start making cars in China, kicking off trial production only 10 months after it broke ground on the plant. That boosted confidence that the company had the ability to hit delivery targets as it grew.

Tesla has said that the initial goal for the Shanghai factory is to make 250,000 cars a year, before ramping up to 500,000 units. It revealed last October that it had hit that first goal, while “continuing to expand” capacity significantly.

The company was also the first foreign automaker to be allowed to open a factory in the country without a Chinese partner, putting pressure on local players.

Tesla previously won a tax break for some of its cars, which helped make its prices more attractive to customers. It also lowered the price of its Model 3 to qualify for government subsidies.

The debut of the Chinese-made Model Y has been hotly anticipated, with the launch seen as another challenge to Chinese rival Nio, which sells its own line of electric SUVs.

Tesla has recently leaned more heavily on its Chinese operations, including a decision last October to start exporting Chinese-made vehicles to Europe.

It also has plans to push deeper elsewhere in Asia, including a launch in India that is expected to happen this year.

Meanwhile, the Chinese auto market is predicted to become even more crucial in the coming years. “By 2022, we believe [more than 40%] of Tesla’s overall delivery sales could come from China, as this remains the main growth region going forward, followed by Europe, then the US,” Wedbush analysts wrote in a note last week.

— Serenitie Wang contributed to this report.

The-CNN-Wire
™ & © 2021 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

Today’s Top Stories

Business

Black Rifle Coffee...
Lindsay Aerts

Black Rifle Coffee, Dallas Cowboys take heat for timing of business partnership

The timing of a business partnership between Utah-based Black Rifle Coffee and the Dallas Cowboys has generated a lot of emotions on social media.
1 day ago
Local environmental groups are taking a victory lap now that a medical waste incinerator in North S...
Lindsay Aerts

Stericycle can no longer burn medical waste in SLC, but the fight to stop toxic pollutants may not be over

Local environmental groups are taking a victory lap now that a medical waste incinerator in North Salt Lake belonging to Stericycle, has been shut down.
1 day ago
air conditioner...
Carlos Artiles

What if your air conditioner breaks down during the summer months?

If your air conditioner breaks down during the summer, you could be on a wait list of a few weeks before it could be fixed or replaced.
1 day ago
draper shooting police...
Mark Jones

Party ban becomes permanent for Airbnb

Airbnb announced this week that it is placing permanent ban on disruptive parties. In April, two people died in a shooting at an Airbnb in Draper.
7 days ago
In this undated photo released by Toyota Motor Corp., its bZ4X vehicle is shown during an online pr...
YURI KAGEYAMA AP Business Writer

Toyota recalls electric car for faulty wheel that may detach

The "bz" in the recalled model's name, as well as others in the works, stands for a "beyond zero" series, including sport-utility vehicles of all sizes, pickup trucks and sportscars, according to Toyota.
13 days ago
A model wears a creation as part of the Giorgio Armani men's Spring Summer 2023 collection presente...
COLLEEN BARRY

Gucci unveils ‘HaHaHa’ collaboration with Harry Styles

Gucci has teamed up with Harry Styles for a between-season collection that infuses tailoring with adolescent joy. The collection is titled “HaHaHa.”
17 days ago

Sponsored Articles

Tax Harassment...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
Joseph Smith Memorial Building...
Temple Square

The Joseph Smith Memorial Building is an icon of Salt Lake City | Why hosting an event at this beautiful location will make you a hero this year

Here's why hosting an event at the iconic Joseph Smith Memorial Building in downtown Salt Lake City will make you a hero this year.
Tesla has started deliveries of the Chinese-made Model Y