What happened: The company headed by Elon Musk can now sell its nationally-made sport utility vehicle in China, according to Reuters.
The electric vehicle maker applied for permission to sell the Shanghai-made Model Y in November and is currently selling its locally produced Model 3 cars in China, according to Reuters.
Why is this important: Wedbush Securities analyst Daniel Ives said China could account for up to 40% of Tesla’s total shipments in 2022.
The analyst predicts that the company could double its sales in the country over the next few years. Ives also said that local VE actors such as BYD Company Limited (OTC: BYDDF), Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV), and Li Auto Inc (NASDAQ: LI) “Also shoot all cylinders.”
The automaker is investing $ 6.4 million to build a new charging station factory in the country.
In October, Tesla sold 13,000 vehicles in China. The company began delivering vehicles made at its Shanghai plant last December, Reuters noted.
Price action: Tesla shares closed almost 2% higher at $ 585.75 on Friday and fell 0.17% in the after-hours session.
Related link: China-made Tesla Model Y threatens Nio’s growing dominance, Bloomberg analysts say
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.