Tesla to export China-made Model 3 vehicles to Europe

US electric vehicle maker Tesla Inc said on Monday it would start exporting China-made Model 3 cars to more than 10 European countries this month.

Tesla, which started delivering vehicles made from its Shanghai factory in December, will export China-made cars in October to countries including Germany, France, Italy and Switzerland, the company said in a statement.

Tesla has been expanding in China even as tensions between Washington and Beijing have been escalating. The Shanghai factory, Tesla's first car plant outside of the United States, aims to build 150,000 vehicles this year.

"Support from Chinese government towards the industry, innovative local companies and customers embracing new technologies make China the best market for smart electric vehicles," Tesla said, adding it will expand car production, charging and sales network in China.

The electric vehicle maker, which sold more than 11,000 Model 3 cars last month in China, the world's biggest auto market, is also building new car manufacturing capacity in Shanghai to make its Model Y sport-utility vehicles.

Reuters reported in September that Tesla was planning to export Model 3 vehicles made in China to Asian and European markets, citing people familiar with the matter.