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Tesla Obtains Green Light to Sell Model Y SUV in China

December 1, 2020 0:14 pm

Beijing (PingWest)- China has granted Tesla to start selling its Model Y sports utility vehicle, which was manufactured by its Gigafactory factory in Shanghai.

The Ministry of Industry and Information Technology announced the approval on its website on Monday.

Tesla applied for the sale permission of its Model Y SUV sales earlier in November, the company has been the production capacity of its Shanghai Giga factory as for the mass-production of its model Y vehicles there.

After its model 3 sedan, the Model Y SUV will be the second Tesla vehicle model to be manufactured and released by its Shanghai Gigafactory.

Tesla begun manufacturing its first made-in-China car- Model 3 series in October last year, then it started delivering the vehicles to Chinese customers in December,2019. The made-in-China vehicle were more than 10% cheaper for Chinese consumer than it was imported from the U.S.

In the third quarter of 2020, Tesla reported a profit for the fifth consecutive quarter in the third quarter on record revenue of USD8.8 billion, supported by strong growth in vehicle deliveries and other businesses.

2020 will be Tesla’s first year of profitability if it can maintain profitability in the fourth quarter of the year.

In the first nine months of 2020, China accounted for 19% of Tesla’s revenue, compared with 12% for the same period of 2019. Tesla sold around 34,100 Shanghai-made Model 3s in the third quarter.

Despite its growing market share in China, Tesla is also facing tough competition from domestic rivals.

Shanghai-based startup Nio reported record-breaking vehicle deliveries in the third quarter of 2020. Xpeng and Li auto, which both started listing on U.S exchanges this summer, also booked a robust sale figures in the third quarter.