According to Reuters, a person with direct knowledge of the plan and a production memo seen by the media said that Tesla has begun production in Shanghai of the Model Y that will be sold in Canada this year. This is the first time Tesla has exported a Chinese-made car to North America.
Tesla’s Shanghai unit began producing Model Ys for shipment to Canada earlier this month, people familiar with the matter said. The vehicle has been designed and tested for export to North America, with the goal of producing nearly 9,000 this quarter, according to a production memo.
According to reports, the price of this model is 10,000 Canadian dollars lower than the Model Y currently sold in Canada and it is in line with the Canadian government’s new energy vehicle subsidy policy.
Tesla’s Shanghai factory is Tesla’s largest and most cost-effective factory in the world. Last year, it exported more than 270,000 Model Y and Model 3 sedans to Europe and other markets, accounting for one-fifth of Tesla’s global sales. one. Tesla Chief Executive Elon Musk told analysts last week that Tesla’s Shanghai plant has the “lowest cost structure”.
Tesla’s Shanghai factory produces the Model Y using lithium-iron-phosphorus batteries, which are cheaper, safer and more durable than other types of batteries. And Tesla’s U.S. factory is rolling out a more powerful battery, called the 4680.
Tesla’s Canadian official website shows that the newly launched Model Y rear-drive version is expected to be delivered to customers between May and July, with a cruising range of 394 kilometers. The entry-level Model Y currently sold in the United States is a four-wheel drive version with a cruising range of 449 kilometers. The price of the new Model Y in Canada is 44,275 Canadian dollars, which is 2,715 Canadian dollars cheaper than the US version.
Tesla has cut the price of the Model Y in the U.S. three times since the start of the year, part of a strategy to boost sales that also slashed its profit margins in the first quarter and sparked a price war for electric vehicles.
Tesla is not the only company exporting electric vehicles from China. Renault’s Dacia brand is also exporting a low-cost electric sedan Spring to Europe, and BMW is exporting its iX3 electric SUV from China to Southeast Asia and Europe. China’s total auto exports quadrupled from 2020 to 2022 to 2 million units and are expected to top 3 million this year.