US auto maker Tesla Inc said Friday it has begun selling Chinese-made Model Y SUVs and will deliver them to customers this month as the US electric vehicle maker expands sales in the world's largest auto market.
China, which offers significant subsidies to electric vehicles in an effort to reduce pollution from gasoline or diesel vehicles, is a key element of Tesla's global strategy. The company is actively expanding its auto plant in Shanghai, where it also manufactures Model 3 sedans and exports them to Europe.
Tesla is also increasing its electric vehicle charger manufacturing capacity in Shanghai and expanding its sales and service network across the country.
The starting price of the Model Y in China is now 339,900 yuan (roughly $ 52,092), according to the company's Chinese website.
Tesla's competitors in China include Volkswagen AG, BMW, and local startups like Nio Inc, Xpeng Inc, and Li Auto Inc, all have electric SUV models.
Recall that at the end of 2020, the authoritative American magazine Consumer Reports put Tesla Model Y in the penultimate place in the ranking of American cars, talking about the poor quality of assembly and body painting, as well as the identified shortcomings in functionality.