Tesla may soon export electric cars from China to North America, including the Model 3 and Model Y models. The news has raised concerns in the industry, as Tesla founder Elon Musk had explicitly denied the plan.
Last month, Tesla added a rear-wheel drive version of the Model Y to the online configurator on its Canadian website. Shortly after, Reuters cited sources as saying that Tesla will begin exporting a Chinese-made Model Y from China to Canada, which would be the first time Tesla has shipped a car from China to North America. The model is likely to be a rear-wheel-drive version of the Model Y produced at Tesla’s Shanghai plant, which also produces the rear-wheel-drive version of the Model 3.
A user recently tweeted a photo showing a left-hand drive Model 3 being unloaded at the port of Shanghai with a North American-specific rear license plate holder, and two Model Y’s can be seen in the photo. a ship is reportedly preparing to leave for the Port of Tacoma, Washington, where the vehicles were unloaded. The Port of Tacoma is just 175 miles from Vancouver, British Columbia, Canada (about 281.64 kilometers).
The news has not yet been officially confirmed by Tesla, but there is some validity to it. Tesla decided to export the rear-wheel-drive version of the Model Y from China to Canada because it qualifies for subsidies in Canada, and the more affordable rear-wheel-drive version of the Model 3 is likely to enjoy Canadian policy benefits as well.
While Tesla has two plants in the U.S. that produce both the Model 3 and Model Y electric vehicles (Fremont, California and Austin, Texas), these plants are primarily designed to meet the demand of the U.S. market. Moreover, the Shanghai plant has the lowest cost structure of all of Tesla’s manufacturing plants, so from an economic perspective, it may be wise for Tesla to export electric cars from China to Canada. i
