By Greg Gao

(JW Insights) Apr 26-- Tesla has begun producing in Shanghai a version of the Model Y to be sold in Canada this year, the first time it will ship cars to North America from China, reported Reuters on April 24, citing a person with direct knowledge of the plan and a production memo.

The Model Y is Tesla’s best-selling model globally, and the move will connect the company’s biggest and most cost-efficient factory to the electric vehicle maker’s largest market.

Tesla’s Shanghai factory began producing the Model Y for Canada earlier this month. It hopes to produce nearly 9,000 vehicles this quarter, which are being designed and tested for export to North America, according to Reuters.

Last month, Tesla posted on its website that it would offer a new, cheaper version of its Model Y in Canada, a rear-wheel drive variant of the SUV-styled crossover priced C$10,000 ($7,377.90) lower than the long-range version of the vehicle available in that market. Delivery of a variant of the Model Y will starts between May and July.

The Canadian government’s website showed that the new version of the Model Y and the more expensive long-range variant both qualify for incentives of C$5,000 on purchase or a four-year lease, according to media reports.