On Tuesday, Tesla (TSLA.O)’s website listed China-made Model 3 and Model Y cars for sale in Canada, confirming its first shipments to North America from Shanghai manufacturing.
Tesla’s website listed rear-wheel drive Model Y vehicles and the long-range, all-wheel drive Model 3 for immediate delivery in British Columbia, with codes indicating they were made in Gigafactory Shanghai.
Unlike the US, Canada offers federal incentives of C$5,000 ($3,700) for both models.
Tesla’s offices in the US and China did not immediately reply to calls for comment.
As Chinese exports rise, the firm and other electric car makers enjoy a cost advantage. For example, Canada listed the China-made Model Y at C$61,990. That’s 22% more than the identical Chinese vehicle before incentives.
Tesla’s choice to ship to Canada from Shanghai could help it sell vehicles built at its California and Texas operations in the US, where they qualify for tax credits of up to $7,500 under the Biden administration’s subsidy scheme.
It also expands Tesla Shanghai’s market, which accounted for over half of the company’s output last year.
Tesla exports EVs to Europe from its Shanghai manufacturing. In addition, Tesla’s Berlin factory is increasing Model Y production for European customers as Chinese EV competitors compete on pricing and features.
Tesla’s listing code matches the first three digits of the VIN. So, for example, shanghai-built Tesla VINs begin with “LRW.”
How many China-made Tesla vehicles were sold in Canada was unclear.
Last month, Tesla announced a cheaper, rear-wheel drive Model Y for Canada that would qualify for government subsidies.
Tesla’s website’s subsidy-eligible automobiles have Shanghai-built VIN codes.
According to Reuters, Tesla designed and tested Model Y vehicles for export to North America and planned to export almost 9,000 this quarter. A source indicated that Model Y automobiles were going to Canada. Due to sensitivity, the subject declined to be identified.
The Model 3 export objective to Canada was unclear.
In November, Reuters reported Tesla contemplated selling Chinese-made cars to North America.
Elon Musk tweeted “False” following the Reuters report.
