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China-made Tesla Model 3 vehicles sit outsidee the Shanghai Gigafactory on Dec. 30, 2019.

SUN YILEI/Reuters

Tesla is planning to export Model 3 vehicles made in China to Asian and European markets, two sources familiar with the matter told Reuters on Friday.

The U.S. automaker, which started delivering Model 3 electric sedans from its Shanghai factory in December, also plans from next year to sell China-made Model 3 vehicles to Japan and Hong Kong, one of the sources said.

Tesla did not immediately respond to a request for comment.

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The U.S. firm is expanding its manufacturing capacity in China to make Model Y sports-utility vehicles (SUVs) and adding lines to make more battery packs, electric motors and motor controllers.

Tesla, which aims to build 150,000 Shanghai-made Model 3 vehicles this year, sold about 11,800 vehicles in China last month.

The sources declined to be named as they are not allowed to speak to media. Bloomberg reported the plan earlier on Friday.

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