A Milestone Day For Tesla! They Reportedly Begin Delivering Model Y Vehicles Produced At Their Plant Inside China.

FILE - In this April 25, 2016, file photo, visitors look at a Tesla Model S electric car on display at the Beijing International Automotive Exhibition in Beijing. Tesla said August 15, 2016, that the removal of the term autopilot from its website for China was a mistake and the term is being restored. (AP Photo/Mark Schiefelbein, File)

Tesla has been selling its Model Y in China for a long time, and up util now, the vehicles had been imported from their plant in California, but Monday marked a big milestone for Elon Musk’s company, as they reportedly began deliveries of their first China-produced version of the electric car.

China’s state run News Agency Xinhua reported on the news Monday, which is a huge deal because China plays a critical role in the growth plans of Tesla. China is the world’s largest automobile market, and electronic vehicle market, and Tesla has said they want their sales volume to go from 500,000 in 2020 to 20 million cars sold annually over the next decade. To do that, they need Chinese consumers to buy a lot of cars.

Tesla is producing their Model 3 sedan at their Gigafactory in Shanghai, a plant they spent $2 billion to build in just under a year. It is also the first plant the company has constructed outside of the U.S.

They started selling to Chinese consumers in late 2019, but now with their local plant operational, Tesla will drastically lower their production and shipping costs, as well as limit any import delays.

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