Tesla has begun production in Shanghai a version of the Model Y going on sale in Canada this year, it will ship cars to North America for the first time from Chinaaccording to a person with direct knowledge of the plans and a production memo seen by Reuters.
The move will connect Tesla’s largest and most cost-effective factory in the world with North America, its largest market. Form Y is tram (EV) manufacturer’s global best-selling vehicle model.
Over the weekend, Tesla posted on its website that it will offer a new, cheaper version of the Model Y in Canada, a rear-wheel drive variant of the SUV styling. Cross each other priced at C$10,000 ($7,377.90) less than the range-topping version of the car available in that market.
Tesla’s website shows that customers in Canada can get a new version of the Model Y between May and July.
The Canadian government’s website was updated on Friday to show that the new version of the Model Y and the more expensive long-range variant are both eligible for the C$5,000 discount on purchase or four years. lease.
Tesla Shanghai began production of the Model Y version for the Canadian market earlier this month, said a person with knowledge of the development. The production memo reviewed by Reuters shows the vehicles have been designed and tested for export to North America, with a target to produce nearly 9,000 units this quarter.
Tesla did not immediately respond to a request for comment.
Reuters reported in November that Tesla was considering a plan to export cars made in China to North America. After the Reuters report was published, Tesla CEO Elon Muskin a Twitter post, said “Wrong” without explaining in detail.
Last week, Musk told analysts that Tesla’s Shanghai plant has the “lowest cost structure” of any of its factories.
SUBSIDIZE
Transport Canada’s Electric Vehicle Incentive Program stipulates that a base model for an SUV must cost less than C$60,000 to qualify for a subsidy of up to C$5,000. Variables Higher cost may then also qualify for up to C$70,000.
The introduction of the cheaper Model Y to Canada qualifies both it and Tesla’s $69,900 long-range Model Y for incentives as of Friday, Transport Canada said on its website.
Tesla’s Shanghai factory uses lithium-iron phosphate (LFP) the battery for the Model Y version produced there for sale in China and exported to Europe and other markets.
At its factories in Texas and California, Tesla has rolling out a more powerful pin configuration called the 4680.
Tesla’s website shows a new Canada-specific version of the Model Y that has an EPA-rated range equivalent to 245 miles (394 km) on a single charge. The American version of the entry-level Model Y, with all-wheel drive, has an EPA-rated range of 279 miles.
The new Canadian Form Y is also cheaper than the US entry-level model — $44,275 compared to the current price of $46,990 for the US.
Tesla has slashed prices in the US on Model Y variants three times since the start of the year, part of a pricing strategy to boost first-quarter sales and spark a price war on electric vehicles.
It shipped more than 271,000 Model Y and 3 . sample sedans from the Shanghai factory last year to Europe and other markets, accounting for about a fifth of global sales.
Tesla is not alone in exporting electric vehicles from China. renault exported the Spring, a low-end EV hatchback to Europe under the Dacia brand. BMW car export iX3 from China to Southeast Asia and Europe.
China’s total auto exports quadrupled from 2020 to 2022 to the top two million vehicles and are on track to hit three million vehicles this year if the pace of the first quarter is maintained.
