Tesla (TSLA) expands Canadian market with China-made Model 3 and Model Y vehicles
Tesla's (NASDAQ: TSLA) website confirmed on Tuesday that the electric vehicle company has officially made China-produced Model 3 and Model Y models available for purchase in Canada. This announcement confirms that Tesla has successfully completed its initial shipments from its Shanghai factory to North America.
The website showed both rear-wheel drive Model Y vehicles as well as the long-range, all-wheel drive version of the Model 3 available for immediate delivery in British Columbia, with codes showing they were manufactured at Tesla’s Gigafactory Shanghai. Both models qualify for federal incentives of C$5,000 ($3,700) in Canada.
By exporting to Canada from Shanghai, Tesla can maintain the supply of vehicles manufactured in California and Texas for the US market, where they qualify for potential tax incentives of up to $7,500. This strategic move not only safeguards the US market but also opens up new prospects for Tesla Shanghai, which accounted for more than half of the company's production last year.
Reuters' analysis of a Tesla production plan revealed the company's focused development and testing of Model Y vehicles designed specifically for export to North America. The plan sets a target of producing around 9,000 units for export in the current quarter, with insider information confirming that these Model Y cars are intended for the Canadian market.
Shares of TSLA are down 1.1% in pre-market trading on Tuesday.
By Michael Elkins | [email protected]