Tesla Inc will start delivering China-built cars on Monday, a major milestone for Elon Musk’s company as it mounts a push to expand in the worlds largest electric-vehicle market.

The first 15 units of Model 3 sedans assembled at Tesla’s new multi-billion-dollar Shanghai plant -- its first outside the United States (US) -- will be delivered to company employees on December 30, an external representative for Tesla said by phone on Friday.

Chief Executive Officer (CEO) Musk is counting on Tesla’s new China plant to help build on recent momentum for the company in the worlds largest market both for EVs and autos in general. The Model 3 will compete with electric cars from local contenders such as NIO Inc and Xpeng Motors, as well as global manufacturers including BMW AG and Daimler AG.

Earlier today, the Model 3 was included on a list of models qualifying for an exemption from a 10 per cent purchase tax in the country. Tesla said in October the locally built Model 3 will be priced from about $50,000. Further helping Tesla, the China-built model this month qualified for a government subsidy of as much as about 25,000 yuan ($3,600) per vehicle.

The company may lower the price of the locally assembled sedans by 20 per cent or more next year as it starts using more local components and reduces costs, people familiar with the matter have said.