Tesla starts work on Model Y program at Shanghai factory

Tesla Inc CEO Elon Musk and Shanghai’s Mayor Ying Yong attend an opening ceremony for Tesla China-made Model Y program in Shanghai, China January 7, 2020. REUTERS/Aly Song

SHANGHAI (Reuters) – U.S. electric vehicle maker Tesla Inc on Tuesday officially started work on a Model Y program at its $2 billion Shanghai factory, in a ceremony attended by its billionaire CEO Elon Musk and senior Shanghai government officials.

The event comes one year after the Silicon Valley carmaker started building its first foreign car plant in the world’s biggest auto market.

It is also set to begin delivering Model 3 vehicles built at the Chinese factory to the public on Tuesday. It handed over 15 cars to its employees on Dec. 30.

Reporting by Yilei Sun and Brenda Goh; Editing by Himani Sarkar