Tesla’s factory in Shanghai, China, has just started exporting Model 3s and Model Ys to North America with sales of these Chinese-made models just kicking off in Canada.
The electric carmaker is currently selling rear-wheel drive versions of the Model Y and all-wheel drive, Long Range versions of the Model 3 in British Columbia that were built at its Chinese facility. Reuters notes that both of these models qualify for federal incentives in Canada worth CA$5,000 ($3,700).
This factory accounted for more than half of Tesla’s production last year and by selling Chinese-made vehicles in Canada, Tesla will be able to sell more of the cars it produces in California and Texas in the United States. This is essential to ensure that they are eligible for federal tax incentives of up to $7,500 as introduced through President Joe Biden’s Inflation Reduction Act.
Reuters notes that it is not yet known how many Model 3s and Model Ys from Shanghai have been exported to Canada nor how many examples have found homes at this stage. In addition to building vehicles for the Chinese market, the factory builds cars for Europe and Australia, among others. Interestingly, a Tesla production plan seen by Reuters suggests that as many as 9,000 vehicles could be exported to Canada this quarter.
Read: Tesla Exporting More Affordable China-Built Model Y To Canada
Confirmation of Tesla models built in China touching down in the Great White North comes a month after the new entry-level, Rear-Wheel Drive model was introduced and priced from CA$59,990 ($44,424).
Tesla Model Ys manufactured in China use lithium-iron phosphate batteries that give the rear-wheel drive model a range of 245 miles (394 km). By comparison, the base car sold in the U.S. and built in the U.S. has 279 miles (440 km) of range.
