US automaker Tesla on Tuesday announced the official start of mass production for the updated Model Y at its Shanghai Gigafactory. The move further highlights the company's expanding operations in the Chinese market, a Chinese expert said.
The company made the announcement on its official Weibo account on Tuesday. Deliveries of the new Model Y will begin in late February. The vehicle is available in two configurations, with prices starting at 263,500 yuan ($36,206) and 303,500 yuan, according to the official website of Tesla China.
Zhang Xiang, director of the Digital Automotive International Cooperation Research Center of the World Digital Economy Forum, told the Global Times on Tuesday that Tesla's decision to mass produce the new Model Y in China reinforces Tesla's strategic focus on the Chinese market.
"It shows Shanghai Gigafactory's manufacturing efficiency has made it a strategic focus in the company's global network," Zhang said.
In the fourth quarter of 2024, Tesla set a new global delivery record, with the Shanghai Gigafactory contributing significantly to this success with record-breaking deliveries in the Chinese market, Tesla told the Global Times in a previous statement.
As Tesla integrates new technologies into its vehicles, it will prompt suppliers to upgrade their production lines, which will help spur upgrades in China's EV supply chain, reinforcing the country's position as a global leader in EV innovation, Zhang said.
In addition to the new Model Y production milestone, Tesla recently celebrated another achievement in the Chinese market with the launch of production at its battery Megafactory in Shanghai, further solidifying its presence in China's energy storage sector.
With an initial annual production capacity of 10,000 units, or roughly 40 gigawatt-hours of energy storage, this Megafactory is expected to play a crucial role in Tesla's global energy storage goals. The company anticipates a year-on-year increase of 50 percent in energy storage deployments in 2025, according to Xinhua.
