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Tesla began production of a Canadian version of the Model Y in Shanghai this year, the first time the company has shipped its cars from China to North America, according to a person familiar with the project and a production reference seen by Reuters.
The move would connect Tesla’s largest and most cost-effective factory in the world with its biggest market, North America. The Y is the company’s best-selling model worldwide.
Over the weekend, Tesla announced on its website that it will offer a new, cheaper version of its Model Y in Canada, a rear-wheel-drive variant of its crossover SUV priced at C$10,000 ($7,377.90) less than the long-range version. .
Tesla’s website showed that customers in Canada could get their hands on the new Model Y between May and July.
A Canadian government website was updated Friday to show that the new Model Y and the more expensive long-range variant are eligible for a C$5,000 purchase incentive or a four-year lease.
Tesla’s Chinese factories began producing the Canadian version of the Model Y earlier this month, according to a person familiar with the matter. The cars are being designed and tested for export to North America, with a target of producing about 9,000 vehicles this quarter, according to a production memo reviewed by Reuters.
Tesla’s factory in Shanghai uses lithium iron phosphate (LFP) batteries for the Model Y, which is manufactured for sale in China and for export to Europe and other markets.
At its plants in Texas and California, Tesla is rolling out a more powerful battery configuration called the 4680.
Tesla shipped 271,000 Model Y and Model 3 vehicles from its Shanghai plant to Europe and other markets last year, nearly a fifth of its global sales.