Elon Musk, a billionaire and CEO of the company, raised an online storm by dancing on stage at the launch of Tesla’s Model Y electric sports utility vehicle program in its new Shanghai factory, where the company delivered its first cars built outside the United States to the public.
The $2 billion Tesla Inc factory started delivering cars in just 357 days, a record for global automakers in China. The first 10 customers from the public received their China-made Model 3 sedans. CEO Musk danced enthusiastically on stage at the event, then stripped off his jacket and flung it aside to reveal a T-shirt with a cartoon of the factory.
In a tweet, he labeled the video not safe for work. He predicted that ultimately Tesla Model Y will have more demand than probably all the other cars of Tesla combined, with his voice cracking with emotion at times while talking about the progress of the Shanghai factory.
The ceremony was attended by Shanghai Mayor Ying Yong and other senior government officials. However, Tesla executives did not provide further details on the progress of the China-made Model Y project. Tesla’s shares, which have jumped about 10% since the beginning of this year, are trading close to their record high after the company beat Wall Street estimates for vehicle deliveries in its fourth quarter.
The positive news from the China factory has also caused a rally in shares of Tesla’s Chinese suppliers. Shares of Tianjin Motor Dies Co Ltd have surged about 28% so far in 2020, while VT Industrial Technology Co Ltd is up nearly 6%. Construction of Tesla’s first plant outside the US began in January 2019 and production started in October.
The factory started with a production capacity of 150,000 Model 3 sedans and Tesla aims to push that to 250,000 vehicles a year, including Model Y, in the plant’s first phase. Tesla unveiled its Model Y in March 2019 and said in October that production of the electric compact SUV at its Fremont facility was running ahead of schedule, adding at the time that it expects to launch the model by summer 2020.
It has said that margin expectations are higher for Model Y than Model 3, while production costs are roughly the same. Tesla’s China website estimates starting price for Model Y vehicles at 444,000 yuan ($63,911.56). The China-made Model 3 sedans are priced at 355,800 yuan before subsidies.