SHANGHAI, April 24 (Reuters) – Tesla has begun producing in Shanghai a version of the Model Y to be sold in Canada this year, the first time it will ship cars to North America from China, according to a person with direct knowledge of the plan and a production memo seen by Reuters.<\/p>\n
The move would connect Tesla’s biggest and most cost-efficient factory in the world to North America, its largest market.The Model Y is the electric vehicle (EV) maker’s best-selling model globally.<\/p>\n
Over the weekend, Tesla posted on its website that it would offer a new, cheaper version of its Model Y in Canada, a rear-wheel drive variant of the SUV-styled crossover priced C$10,000 ($7,377.90) lower than the long-range version of the vehicle available in that market.<\/p>\n
Tesla’s website showed that customers in Canada could take delivery of the new version of the Model Y between May and July.<\/p>\n
The Canadian government’s website was updated on Friday to show that the new version of the Model Y and the more expensive long-range variant both qualify for incentives of C$5,000 on purchase or a four-year lease.<\/p>\n
Tesla Shanghai began production of the Canada-bound version of Model Y earlier this month, the person with knowledge of the development said.The production memo reviewed by Reuters showed that vehicles had been designed and tested for export to North America, with a target of producing nearly 9,000 this quarter.<\/p>\n
Tesla did not immediately respond to a request for comment.<\/p>\n
Reuters reported in November that Tesla had considered plans for exporting made-in-China vehicles to North America.After the Reuters report was published, Tesla CEO Elon Musk, in a Twitter post, had said “False,” without elaborating.<\/p>\n
Musk told analysts last week that Tesla’s Shanghai plant had the “lowest cost structure” of any of its factories.<\/p>\n
SUBSIDIES<\/p>\n
Canada’s transport agency’s EV incentive program mandates that a base model for an SUV has to be under C$60,000 to qualify for the subsidy of up to C$5,000.Higher cost variants are then also eligible at a price of up to C$70,000.<\/p>\n
The introduction of the cheaper Model Y for Canada qualified both it and Tesla’s C$69,900 long-range Model Y for the incentive as of Friday, Transport Canada said on its website.<\/p>\n
Tesla\u00b4s Shanghai plant uses lithium-iron phosphate (LFP) batteries for EvdEn EVE NAKliyat<\/a> the Model Y version produced there for sale in China and for export to Europe and other markets.<\/p>\n At its factories in Texas and EVDEN eve nAKliYAt<\/a> California, Tesla has been rolling out a more powerful battery configuration known as 4680.<\/p>\n Tesla\u00b4s website shows the new, Canada-specific version of the Model Y has an EPA-rated range equivalent to 245 miles (394 km) on a charge.The U. For those who have virtually any queries<\/a> regarding where along with tips on how to make use of eVDEn Eve NAKLiYat<\/a>, you can contact us on our own website. S. version of the entry-level Model Y, which has all-wheel drive, has an EPA-rated range of 279 miles.<\/p>\n The new Model Y for Canada is also cheaper than the entry-level U.S. model – $44,275 versus the current price of $46,990 for the U.S.<\/p>\n Tesla has cut U.S.prices on Model Y variants three times since the start of the year, part of a discounting strategy to drive volume that sliced into its first quarter margin and touched off a price war on EVs.<\/p>\n It shipped more than 271,000 Model Y and Model 3 sedans from its Shanghai factory last year to Europe and other markets, roughly a fifth of its global sales.<\/p>\n Tesla is not alone in exporting EVs from China.Renault exports the Spring, an entry-level hatchback EV to Europe under its Dacia brand. BMW exports the iX3 from China to Southeast Asia and Europe.<\/p>\n