It would be the first time will ship cars from China to North America, connecting its largest and most cost-effective factory in the world with its biggest market, North America.

(Image credit: CnEVPost)

Tesla has begun production in Shanghai of the Model Y crossover that will be sold in Canada this year, Reuters said in a report today, citing people with knowledge of the plan and a production memo.

It will be the first time the company will ship cars from China to North America, a move that will connect Tesla's largest and most cost-effective factory in the world with its biggest market, North America, the report said.

Tesla launched a cheaper, rear-wheel-drive Model Y in Canada just this past weekend, starting at C$59,990, C$10,000 less than the long-range version.

Tesla's website shows that Canadian customers can take delivery of the new Model Y between May and July.

(Screenshot from Tesla's Canadian website.)

The electric vehicle (EV) maker's Shanghai plant began production of the Canadian version of the Model Y earlier this month, Reuters said, citing a person familiar with the matter. The vehicles are being designed and tested for export to North America, with a goal of producing nearly 9,000 units this quarter, the report said.

Tesla CEO Elon Musk told analysts last week that the company's Shanghai plant has the lowest cost structure of any of its factories, the report noted.

Tesla's factory in Shanghai makes the Model 3 and the Model Y. The plant not only supplies vehicles to local consumers, but is also an export hub for the EV maker.

The company delivered 76,663 vehicles in China in March, and the Shanghai plant exported 12,206 vehicles, according to data released earlier this month by the China Passenger Car Association (CPCA).

It delivered 422,875 vehicles worldwide in the first quarter, including 412,180 Model 3 and Model Y vehicles and 10,695 Model S and Model X vehicles, according to data it announced April 2.

In the first quarter, Tesla sold 229,322 China-made vehicles, contributing 54 percent of its global deliveries.

Tesla's Shanghai plant exported 91,893 vehicles in the first quarter, up 24.39 percent year-on-year, according to data monitored by CnEVPost.

Tesla prices: Here's how Model 3 and Model Y compare in China vs other markets

Become A CnEVPost Member

Become a member of CnEVPost for an ad-free reading experience and support us in producing more quality content.

Become A Member