Skip to main content

Tesla (TSLA) secures tax exemption on new made-in-China Model Y ahead of production start

Tesla (TSLA) has secured tax exemptions for “new energy vehicles” in China for its upcoming new Model Y made at Gigafactory Shanghai.

It’s one of the last steps before the electric SUV can be delivered to customers in the country.

As we previously reported, Tesla has taken a new vehicle introduction strategy for Model Y. Unlike previous vehicle programs, which were launched in different markets with vehicles imported from Tesla’s Fremont factory in California, Tesla is only introducing Model Y in new markets once the vehicle is being produced there.

For the past 10 months, Tesla has been expanding Gigafactory Shanghai to prepare for the production of the electric SUV.

The plant has more than doubled in size.

Last month, Tesla released new pictures of the upcoming Model Y Shanghai factory

Earlier this month, the Chinese Ministry of Industry & Information Technology registered the made-in-China Model Y.

Now the ministry has included the Tesla Model Y in its 12th batch of recommended “new energy vehicles” – making the electric SUV eligible for electric vehicle incentives, including tax exemptions, in the country.

This is among the last steps for Tesla to start producing and selling the Model Y in China.

A camouflaged prototype Model Y was even spotted being tested at Gigafactory Shanghai last week as the automaker is gearing up to start production:

Tesla has been guiding a start of production and deliveries of the Model Y in China in “early 2021.”

Production is expected to start any day and ramp to higher volumes in the coming months for deliveries in Q1 2021.

The hype around the Model Y in China is high, and the vehicle is expected to make a big impact in the small SUV/crossover segment, which is hugely popular in China.

Startups like Nio and Xpeng have been quick to address it with their own first electric vehicles.

Last month, an analyst of the auto market in China estimated that Tesla could sell as many as 30,000 Model Y vehicles per month once the cheaper version of the electric SUV is available.

That’s about three times bigger than Tesla’s Model 3 sales, which is already dominating the electric vehicle market in the country.

FTC: We use income earning auto affiliate links. More.

Stay up to date with the latest content by subscribing to Electrek on Google News. You’re reading Electrek— experts who break news about Tesla, electric vehicles, and green energy, day after day. Be sure to check out our homepage for all the latest news, and follow Electrek on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our YouTube channel for the latest reviews.

Comments

Author

Avatar for Fred Lambert Fred Lambert

Fred is the Editor in Chief and Main Writer at Electrek.

You can send tips on Twitter (DMs open) or via email: fred@9to5mac.com

Through Zalkon.com, you can check out Fred’s portfolio and get monthly green stock investment ideas.