Tesla Shipping 7,000 China-Made Model 3s to Europe

Tesla on Tuesday reportedly will ship about 7,000 made-in-China electric cars to Europe.
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Tesla  (TSLA) - Get Report on Tuesday reportedly will ship about 7,000 made-in-China electric cars to Europe.

Shares of the Palo Alto, Calif., automaker at last check were down 1.8% to $413.04.

The Model 3s were made at the company's Shanghai gigafactory, CNBC reported, citing a report in the China-backed outlet the Paper.

They are scheduled to arrive in Belgium at the end of next month, with planned deliveries to Germany, France, Italy, the Netherlands, Portugal, Switzerland, Sweden and other countries.

The company said that Model 3 production capacity for the Shanghai factory, which opened a year ago, has  reached 250,000 units a year.

Chinese regulators said last week that Tesla was recalling as many as 48,442 of its U.S.-made Model S and Model X cars that it sold to customers in China. That's due to potentially faulty and unsafe front and rear suspensions.

Separately, Tesla said in a regulatory filing that a fourth tranche of Tesla stock options will vest to Chief Executive Elon Musk upon certification that milestones laid out in his 2018 performance award have been achieved. 

This month, the market capitalization milestone of $250 billion was achieved, and the operational milestone of annualized adjusted Ebitda of $4.5 billion will be achieved as of the issuance of Tesla’s Securities and Exchange Commission Form 10-Q quarterly report.

Tesla said it expected that the remaining unamortized expense of $122 million associated with the fourth market-capitalization-milestone period will be accelerated into the fourth quarter of 2020. Tesla had expected to recognize that expense in quarters through third-quarter 2023.

The company in the filing said that as of and following September "there has continued to be widespread impact to the global economy" from the coronavirus pandemic. 

"We temporarily suspended operations at each of our manufacturing facilities worldwide for a part of the first half of 2020," the filing said. 

Exiting first-half 2020, however, "we have resumed operations at all of our manufacturing facilities, continue to increase our output and add additional capacity, and are working with each of our suppliers and government agencies on meeting, ramping and sustaining our production," Tesla said.

 Last week, Tesla reported third quarter results that topped analyst estimates.