Tech

Elon Musk says will design a future Tesla car in China for global market

Key Points
  • Tesla CEO Elon Musk said the company will open a design and engineering center in China.
  • Musk said Tesla will "design an original car in China for worldwide consumption."
  • On Tuesday, Musk delivered the first Model 3 cars out of the Shanghai factory to the public.
  • China is seen by analysts as a critical market for Tesla but it faces a number of challenges from cooling electric vehicle sales to increasing competition. 
VIDEO2:5802:58
Tesla hits new highs as Model 3 deliveries roll out in China—Three experts on the company's future

Tesla CEO Elon Musk said the company will design a future car in China for the global market.

The electric car company founder said Tesla would open a design and engineering center in the world's second-largest economy. He did not specify any timelines.

Tesla also confirmed that it would start work on a production program for its Model Y crossover vehicle in its Shanghai Gigafactory, the only production factory outside of the U.S. Production for its Model 3 — a sedan that was announced before the Model Y back in 2016 — only started in October in the Shanghai factory.

Musk made the announcements as he delivered the first Model 3 cars out of the Shanghai factory to the public.

"We intend to continue making a significant investment and increasing the investment in China, making the Model 3 and the Model Y and future models also in China," Musk told an audience in Shanghai.

"Something that would be super cool … So we're going to do it … is to try to create a China design and engineering center to actually design an original car in China for worldwide consumption. I think this will be very exciting," he added.

China is seen by analysts as a critical market for Tesla but it faces a number of challenges from cooling electric vehicle sales to increasing competition.

Still, the company has produced positive news with a profitable third quarter of 2019 and fourth-quarter vehicle delivery numbers that topped Wall Street estimates. Shares of the firm hit a record high of $454 last week.