China recently added another Chinese-made-and-sold Tesla to its stable, rolling out the Model Y electric SUV.

The vehicle has now begun deliveries in the country, with Tesla’s Shanghai Gigafactory, which Tesla founder Elon Musk calls a “template for future growth,” producing the cars.

The company’s Shanghai factory is already proving to exceed capacity expectations; it had set a goal of 250,000 cars a year when it opened in 2019 before quickly increasing that figure to 500,000. China also has consistent rules about foreign manufacturers having to partner with Chinese auto manufacturers to get infrastructure, though Tesla became the first factory allowed in the country without a Chinese partner.

In a CNN report, analysts from Wedbush are quoted as saying, “By 2022, we believe [more than 40%] of Tesla’s overall delivery sales could come from China, as this remains the main growth region going forward, followed by Europe, then the U.S.”

The company now plans to use Chinese infrastructure at a global scale, exporting Chinese-made Tesla’s to Europe.

In this MarketScale Industry Update, hosts Daniel Litwin and Tyler Kern explore China’s dominance as an auto manufacturer and EV consumer market, how Tesla’s moves in China could lead to more global expansion from other EV OEMs, how the U.S. fits into the picture, and more.

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