Tesla, Inc. product architect and chief executive officer Elon Musk previously said that the company would not ship electric vehicles made in China to North America. But with this Reuters exclusive news story, is the Tesla CEO retracting what he said?
Global news agency Reuters obtained a production memo, was in touch with a person with direct knowledge of the plan, and reported that the EV maker is gearing up to explore Model Ys manufactured in China’s biggest city, Shanghai, to North America in Canada.
The Tesla Model Y is an all-electric compact luxury crossover sport utility vehicle (SUV). It was first announced last March 2019 and started reaching customers’ doorsteps in March 2020.
Tesla Model Y shares several similarities with its Model 3 sedan, including its interior design, platform, and many other components. However, this SUV is taller and more spacious. It has a more sizable cargo area and all-wheel drive, with various battery sizes and ranges.
Model Y also features many of the brand’s signature technologies, such as the Tesla app that lets users remotely control the car’s functions and the Autopilot advanced driver assistant system.
Now that Tesla is readying to export Model Y from China to Canada, big changes are coming; history is being made.
“The move would connect Tesla’s biggest and most cost-efficient factory in the world to North America, its largest market,” Reuters said.
Earlier this month, Tesla has already begun manufacturing Model Ys at its factory in Shanghai. It will soon be available to customers in Canada between this May and July. The report added this SUV is being designed and tested for North America with a target of producing nearly 9,000 units this quarter.
The Canadian government reportedly said both this new version of the Model Y and the original qualify for an EV incentive.
This SUV-styled crossover will cost around $7,300, lower than the current lang-range version. Canada’s transport agency’s EV incentive program mandates that an SUV base model must be under around $44,300 to qualify for a subsidy of up to approximately $3,600. Likewise, higher-cost variants are also eligible for the incentive at a price of up to about $51,700.
Previously, Tesla’s Shanghai factory has also exported to Europe and other markets, wherein over 271,000 Model Y and Model 3 sedans were exported, according to Reuters.
Vehicle exports from China have grown four-fold between 2020 and 2022. They will top three million this year if the business pace for the first quarter is maintained.
What do you think about this change?
