Reports: Tesla Considering Export of China-Made EVs to the US

Automobile

According to reports, Tesla is considering exporting electric cars produced in China to the United States, which is a reversal that will reflect the deepening cost advantage of Tesla at its Shanghai plant and decreasing demand from Chinese consumers.

Tesla has been studying whether parts made by the company’s China-based suppliers are getting any complaints with local regulations in North America, and if they could ship China-made Tesla Model Y and Model 3 cars for sale in the North American region as soon as 2023. This step from Tesla could also open a channel for exports to Canada.

Tesla’s Shanghai-based gigafactory has the capacity to manufacture 1.1 million electric vehicles per year after an upgrade, making the factory Tesla’s most productive manufacturing hub in the world. The plant is responsible for producing Tesla Model 3 sedans and Model Y crossovers to be sold in China, and also for export to international automobile markets, including Australia, Europe, and South East Asia.

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Until now, Tesla had been selling and shipping every vehicle it manufactured in the Shanghai factory, but the inventory levels increased by the largest margin ever in October 2022, according to data.

This new plan could create new complexity for buyers in the United States, and under the terms of a new electric-vehicle subsidy and production plan by the US government, the incentive that is available for an individual vehicle can differ depending on whether it was imported.

Sandy

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