Tesla says deliveries for its China-made Model Y SUV will begin this month

In an announcement on Friday, Tesla Inc. (NASDAQ: TSLA) said it will deliver its China-made Model Y sports-utility vehicle (SUV) to the countrywide customers in January. The announcement comes roughly two months after China had given the green signal to the electric car manufacturer to sell its local-made SUV.

Tesla shares closed the regular session at £516.18 on Thursday, that represents an over 700% gain in 2020. Its current per-share price marks a record high since its debut on the Nasdaq Stock Exchange in June 2010. Earlier in 2020, the American electric vehicle and clean energy company opted for a 5-for-1 stock split, much like the tech giant, Apple Inc.  

Tesla’s China-made Model Y starts at £38,057

Tesla announced the price tag of £38,057 for its China-made Model Y SUV on Friday, that is lower than its rivals and is likely to give it a competitive edge in the world’s largest car market. Model Y Performance car, on the other hand, will be available to its customers in China at a slightly higher price of £41,416.

CEO Elon Musk has already expressed confidence at numerous occasions that Tesla’s Model Y can potentially outsell the rest of the vehicles that the company makes. Earlier this week, a Bloomberg report said that Tesla’s dominant position in China could be threatened in 2021.

China wants to minimise the use of petrol and diesel cars in the upcoming years to combat pollution. As part of its commitment, it offers significant subsidies for electric vehicles – a policy that is central to Tesla’s global strategy.

Tesla is quickly expanding its production capacity in China

Tesla is quickly expanding its production factory based in Shanghai. The U.S. manufacturer also makes its Model 3 sedan in this factory that it started exporting to Europe in October. Tesla is also committed to expanding its network for sales and services in China, including production and installation of EV chargers across the country.

In separate news from China, Tesla struck a deal with Yahua Industrial earlier this week under which the Chinese company will supply Lithium Hydroxide (battery-grade) to the world’s largest electric carmaker for the next five years.   

Tesla performed fairly upbeat in the stock market last year with an annual gain of about 30%. At the time of writing, the Palo Alto-based company is valued at £489.29 billion and has a price to earnings ratio of 1,398.14.