Tesla surges 4% to record high amid approval from China to sell its Model Y SUV

• Tesla's stock hit a record high on Monday amid a report from Reuters that the electric vehicle company gained approval from China to sell its Model Y SUV in the country.
• Tesla has built up its manufacturing capabilities in Shanghai to produce the Model Y SUV.
• The company already sells its Model 3 in the country, and sold 13,000 vehicles in the country last month.
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Tesla surged to record highs on Monday following a report from Reuters that it received approval from the Chinese government to sell its Model Y SUV in the country.

The approval came in the form of documents released by China's Ministry of Industry and Information Technology, according to Reuters. Tesla requested permission from China to sell its Model Y earlier this month.

Tesla has already been selling its Model 3 in the country, and delivered 13,000 vehicles in the country last month.

The company has been building up its manufacturing capabilities in the country since late 2018 with its Shanghai plant, which currently produces the Model 3 and will begin to produce and deliver Model Y cars in early 2021.

Tesla jumped as much as 4% in Monday trades, hitting a record high of $607.80. The move higher helped solidify its market valuation of more than $500 billion, though the gains eventually deteriorated in Monday's trading session.

Tesla's Shanghai plant is proving to be instrumental in its expansion plans, as it begins to export Model 3 vehicles produced in China to Europe. The company also plans to begin building electric vehicle chargers at its Shanghai plant in 2021.

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