On Tuesday, Tesla CEO Elon Musk addressed several government officials as the American Automotive company launched its new Model Y electric sports utility vehicle program in its new Shanghai factory.
Tesla’s latest ambitious project is the company’s first entry in the compact luxury SUV segment. The launch comes just one year after the company broke ground on its first overseas plant.
Tesla unveiled the Model Y in March 2019 and stated that production of the electric compact SUV will be running ahead of schedule, adding that it expects the model to launch by summer 2020.
However, Tesla stated that margin expectations are much higher for the Model Y than Model 3 despite production costs costing more or less the same. Tesla’s China website estimates the starting price for Model Y vehicles at 444,000 yuan ($63,912), whereas the China-made Model 3 sedans are priced at 355,800 yuan before subsidies.
Shanghai Vice Mayor Wu Qing stated that he hopes to see Tesla extend its cooperation with the city and for the carmaker to manufacture more models at the Chinese plant.