Tesla will make the Model Y in Shanghai and design an 'original car' in China

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Watch Elon Musk dance on stage during a Tesla event at the company's factory in Shanghai.

Hong Kong Tesla started delivering its Shanghai-made Model 3 cars to the public in China on Tuesday, the first step in CEO Elon Musk's much bolder plan for the world's biggest market.

Speaking at a ceremony to mark the first deliveries, Musk announced that Tesla will also make the Model Y, its lower-priced SUV, at its new Shanghai factory, and plans to open a design center in China with the aim of creating an"original car" for sale in markets around the world. "Ultimately the Model Y will have more demand than probably all of the other cars of Tesla combined," he said.

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