Tesla China Team Gets Elon Musk's Praise As Giga Shanghai Said To Have Begun Mass-Producing Model Y

Tesla Inc’s (TSLA) China team won some praise from CEO Elon Musk after a fan posted a milestone for the electric vehicle maker’s gigafactory in Shanghai.

What Happened: Musk applauded in confirmation to a fan post that Gigafactory Shanghai has begun mass producing Model Y, for delivery in China and other countries in Asia and will also be shipped to Europe, Australia, and other key markets. 

Why It Matters: Tesla was earlier this week reported to have reached a production capacity of 1,000 Model Y units at the Shanghai gigafactory and to have begun delivering the Model Y vehicles in Europe.

Tesla had in its second-quarter earnings revealed that it has successfully shifted its “export hub” from Fremont Factory and established the Shanghai gigafactory as the primary export hub. The Shanghai manufacturing facility was originally meant to cater to local demand.

Tesla was known to be holding off Model Y deliveries to Europe until production of the model would begin in Giga Shanghai or Giga Berlin. With the delay in Giga Berlin plans, Tesla chose to ship the Model Y from China instead. 

Price Action: Tesla shares closed 0.38% higher at $711.20 on Wednesday.