Tesla starts production of Model Y in China for export to Canada

A version of the Model Y is now being produced in Shanghai by Tesla, with plans to sell it in Canada this year. This marks the first time the company will export cars to North America from China, as confirmed by an individual with insider information and a production memo that Reuters has seen.

Tesla’s largest and most cost-efficient factory in Shanghai is now connected to North America, the company’s largest market. The Model Y, which is the best-selling electric vehicle (EV) globally, will be sold in Canada.

On its website, a recent announcement from Tesla stated that a cheaper version of the Model Y would be available in Canada. The SUV-styled crossover will be a rear-wheel-drive variant priced C$10,000 ($7,377.90) less than the long-range version in the same market.

As per the information on Tesla’s website, the new version of the Model Y will be available for delivery in Canada from May to July. Furthermore, the Canadian government’s website was updated on Friday, indicating that both the new version of the Model Y and the more expensive long-range variant are eligible for incentives of C$5,000 on purchase or a four-year lease.

According to an individual who has knowledge of the development, production of the Model Y for Canada started at Tesla’s Shanghai factory earlier this month. The production memo reviewed by Reuters revealed that the vehicles were designed and tested for export to North America, with an aim to produce around 9,000 cars this quarter.

To be eligible for an EV incentive subsidy of up to C$5,000, the base model of an SUV in Canada must be priced under C$60,000, as per the transport agency’s program. Vehicles priced higher, up to C$70,000, are also eligible for the subsidy.

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