Tesla Inc. (NASDAQ: TSLA) began delivery of Model Y vehicles in China on Monday.
What happened: The company, led by Elon Musk, posted pictures of customers taking delivery of a mid-size electric sports utility vehicle on its Twitter feed.
欢迎! Model Y deliveries have officially begun in China pic.twitter.com/fG5aax1k2b
– Tesla (@ Tesla) January 18, 2021
According to a report by the news agency Xinhua, the initial Shanghai delivery will be done by other cities, according to Tesla, a Chinese government news agency.
Why it matters: The Model Y went on sale in China in early 2021 and, according to Electrec, placed enough orders to end supply for the first three months of 2021.
See it all: Large-scale Gigafacting of Tesla Model Y vehicles spotted in Shanghai, ready for delivery
Priced at RMB 339,900 ($ 52,376) in China, analysts expect the SUV to boost Tesla’s Chinese sales and emerge as a blocker in the East Asian country’s auto market this year.
Vehicle costs less than a tenth of similar luxury cars powered by gas Daimler AG (OTC: DDAIF), BAIRESKH MOTOREN WERKE AG (OTC: BMWYY), and Volkswagen AG (OTC: VWAGY), according to Reuters.
Vehicles will also threaten increasing dominance from homespoon EV companies Nio Inc (NYSE: NIO), Xpeng Inc. (NYSE: XPEV), BYD Company Limited (OTC: BYDDF), and Lee Auto Inc (NASDAQ: LI).
Price Action: Tesla shares closed nearly 2.2% lower at $ 826.16 on Friday and fell nearly 0.3% in the subsequent session.
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