Tesla is reportedly shipping 7,000 made-in-China cars to Europe

(CNBC) – Tesla will begin shipping made-in-China electric cars to Europe on Tuesday, according to Chinese media reports.

About 7,000 Model 3s made at the Shanghai gigafactory are set for arrival in Belgium at the end of next month, with planned deliveries to many countries including Germany, France, Italy, the Netherlands, Portugal, Switzerland and Sweden, state-backed news outlet The Paper said Monday.

Tesla did not immediately respond to a CNBC request for comment.

Covid-19, which first emerged late last year in the Chinese city of Wuhan, has hampered the ability of businesses around the world to resume work. The spread of the disease stalled within China earlier this year. But the pandemic has persisted in the United States and Europe and countries in the West continue to grapple with concerns about a second wave.

Following past manufacturing issues, Tesla CEO Elon Musk said the automaker produced 143,036 vehicles in the third quarter. The company said that Model 3 production capacity for the Shanghai factory, which opened one year ago, has now reached 250,000 units a year.

Last week, Chinese regulators announced that Tesla is recalling up to 48,442 of its U.S.-made Model S and Model X cars that were sold to customers in China, due to potentially faulty and unsafe front and rear suspensions.

Helped by supportive government policies and less costly technology, analysts predict that Europe and China — the largest auto market in the world — will see significant growth in electric vehicle sales in the coming years.

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