In an unprecedented move, Tesla will begin shipping Chinese-built cars to the North American market.

According to a report by Reuters, Chinese-built Tesla Model Ys will soon populate Canadian roads. The new rear-wheel-drive units will be built at a low price point and to Canadian specifications with deliveries set for May through July. This will be the first time Tesla ships Chinese-built units to North America.

For Tesla, exporting vehicles from China could also help the company to reach its ambitious production targets. CEO Elon Musk has previously stated that he believes the company can produce 20 million vehicles per year by 2030, up from just over 500,000 in 2020.

It’s extremely unlikely any of these Chinese-built Model Ys will be exported to the US due to the costs associated with the Inflation Reduction Act tax credit disqualification for such models. However, Tesla's decision to export these vehicles highlights the potential for even more affordable pricing for their best-selling model. Should this move prove successful in Canada, there's a chance that the US market may eventually receive this more accessible version. As Tesla faces competition from other EV manufacturers such as Ford and Hyundai, such a move could help the company retain its share of the EV market.