Tesla wants to import its made in China EVs into the US

Tesla apparently wants to sell its China-made EVs in the US, according to a new report allegedly originating with "two people with knowledge of the planning" who spoke to Reuters under the condition of anonimity.

Offering EVs made at its Shanghai Gigafactory in the US would be a novel move but the cost advantage is reportedly big enough to warrant such a plan. Not just that, but it got bigger with time, thanks to a cheaper yuan against the US dollar, lower raw material prices in China, and the rise in new car prices in the US. The Model Y, for example, starts at the equivalent of $49,344 in China, and $65,990 in the US.

There's also slower demand from Chinese consumers for the company's EVs, which frees up production capacity that could be used for building cars for the US market. Gigafactory Shanghai has the capacity to make 1.1 million cars per year, the most of any of Tesla's plants. It makes cars that are sold in China, as well as Europe, Australia, and Southeast Asia. And yet, its inventory rose in October to the highest level it's ever been.

Tesla has been studying whether parts made by its China-based suppliers comply with regulations in North America, and if they do, we could see China-made Model 3 and Model Y cars on sale in the US as soon as next year. They might also be exported to Canada.

Unsurprisingly, Tesla did not respond to a request for comment, but, for what it's worth, Elon Musk did deem the story "false" on Twitter (where else?) without elaborating further.

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