Tesla Stock Fell After It Sold Shanghai-Made Electric Automobiles in Canada

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Tesla (NASDAQ:TSLA) has finished sending the first batches of electric automobiles manufactured in Shanghai to customers in North America.

According to a listing on the company’s website discovered by Reuters, the Model 3 and Model Y versions constructed in China were available for purchase in Canada. The products’ codes indicated that they were produced in the Gigafactory Shanghai. It has yet to be discovered how many of the automobiles built in Shanghai are currently available for purchase in Canada. At the beginning of this month, marine monitoring data indicated for the first time that a ship from China carrying Tesla automobiles was making its way across the Pacific Ocean.

Both of the Tesla models made in Shanghai and now advertised for sale in Canada are eligible for government incentives totaling $5,000 CAD in the country. On the other hand, since the manufacturing is located outside of the United States, the cars will not be eligible for tax credits in that country.

Even though Tesla has not officially stated that the electric vehicles built in Shanghai would be available for sale in Canada, the decision may have been undertaken for strategic reasons. Tesla might have more supply in the United States to fulfill demand there, where the cars qualified for the full $7,500 tax benefit if it sold electric automobiles built in Shanghai and manufactured in Canada. There are also signs that EV customers in the United States need clarification about which electric car models qualify for the tax credit. This is a circumstance that many experts view as playing into the advantage of Tesla stock, which is a company that manufactures electric vehicles.

In pre-market activity on Tuesday, Tesla stock fell by 0.45%, reaching $187.90. This compares to a trading range of $101.81 to $314.67 over the last 52 weeks.

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