Benzinga | Nov 30, 2020 04:48AM EST

Tesla Gets China Go-Ahead To Sell Shanghai-Made Model Y EVs

Tesla Inc (NASDAQ:TSLA) has been granted permission by China's Ministry of Industry and Information Technology to sell its Shanghai-made Model Y vehicles, Reuters reported Sunday.

What Happened: The Elon Musk-led company can now sell its domestically-made sports utility vehicle in China, according to Reuters.

The electric vehicle maker had applied for permission to sell Shanghai-made Model Y in November and currently sells its locally-produced Model 3 cars in China, as per Reuters.

Why It Matters: Wedbush Securities analyst Daniel Ives said China could represent up to 40% of overall Tesla deliveries in 2022.

The analyst predicts the company could double its sales in the country in the next few years. Ives also said that local EV players such as BYD Company Limited (OTC:BYDDF), Nio Inc (NYSE:NIO), Xpeng Inc (NYSE:XPEV), and Li Auto Inc (NASDAQ:LI) are also "firing on all cylinders."

The automaker is investing $6.4 million in building a new charging-station factory in the country.

In October, Tesla sold 13,000 vehicles in China. The company began delivering vehicles made at its Shanghai factory last December, noted Reuters.

Price Action: Tesla shares closed nearly 2% higher at $585.76 on Friday and fell 0.17% in the after-hours session.

Related Link: Tesla's China-Made Model Y Threatens Nio's Growing Dominance, Bloomberg Analysts Say