Tesla (TSLA) - Get Report shares are climbing after the company unveiled the first vehicles built in China at its Shanghai gigafactory, which broke ground in January. 

The blue Model 3 sedans feature the Tesla name in Chinese lettering. The vehicles start at about $50,000 each. 

The Shanghai gigafactory, the first plant in China wholly owned by a foreign carmaker, is Tesla's first full-scale production facility outside the U.S.

Tesla is still working on obtaining manufacturing certification that will allow it to expand production. 

The Palo Alto, Calif., electric-vehicle maker hopes to get that certification by year's end, according to Chairman Robyn Denholm. 

Producing the vehicles in the world's largest auto market will enable Tesla to avoid tariffs that China levies on foreign auto makers. 

Tesla shares were trading up 3.4% to $348.67 on Monday.