Tesla starts production of Model 3

US electric carmaker Tesla Inc started trial production of its Model 3 sedans at its Shanghai plant in October. The $2 billion plant, which broke ground in January 2019, is the company's first factory outside the United States and the first automobile production project wholly owned by foreign investor in China. Tesla CEO Elon Musk described it as a "template for future growth".

The company said it was around 65 percent less expensive to build than its Model 3 production system in the US. It started to accept orders in October and deliveries are expected to start in early 2020. The initial production capacity at the Shanghai plant will be 3,000 cars a week. The Model 3 has also made it into the list of new energy vehicles recommended for the Chinese government's subsidies. Besides the Model 3, the plant is expected to produce the Model Y in the future.