Tesla Inc will soon roll out its Model Y sedans produced from its Shanghai plant, the company said on Saturday as it reported delivering nearly 500,000 cars in 2020.

The electric vehicle maker said production of the Model Y, a sport utility vehicle, has begun at its Gigafactory 3 in Shanghai's Lingang Special Area, with deliveries expected to commence shortly.

The US automaker managed to near the 500,000 threshold thanks to a record-high fourth quarter, with 180,570 cars delivered in the three months that ended in December, which was 30 percent higher than the previous quarter.

It produced 509,737 electric vehicles in 2020.

The company didn't break out regional sales figures, or break out figures for each model. But the newer Model 3 and Model Y vehicles combined have a significant larger share in the portfolio, with production reaching 454,932 units and deliveries of 442,511 units.

The development came just a day after the automaker's announcement it is taking orders for Model Y's Long Range version, starting at 339,900 yuan ($52,028), a price tag lower than market expectations. A Performance Range version will start from 369,900 yuan.

Competition is heating up in China's burgeoning EV market as domestic and foreign players unveiled electrified cars to cut pollution, as China seeks its long-term goal of reaching carbon neutrality by 2060.

While continuing to bolster the sector's development, the country cut subsidies on new energy cars by 20 percent this year as mindsets for cleaner cars began to take shape. Like last year, subsidies also apply to passenger cars costing less than 300,000 yuan.