U.S. electric car maker Tesla Inc (TSLA.O) said it has started work on building Model Y electric sports utility vehicles (SUV) at its $2 billion Shanghai factory, marking a new milestone for the company’s first foreign car plant.

Axar.az reports citing foreign media that the event comes just over a week after Tesla started delivering Model 3 vehicles built at the factory that was up and running in just 357 days - a record for global automakers in China. The first batch of sedans was handed to its employees.

Tesla delivered China-made Model 3 cars to 10 customers from the public on Tuesday.

“We are holding today a ceremony to mark the start of the China-made Model Y program,” senior Shanghai government official Zhu Zhisong said at the ceremony, also attended by billionaire CEO Elon Musk, Shanghai Mayor Ying Yong and other senior government officials.

Musk said that “ultimately Tesla Model Y will have more demand than probably all the other cars of Tesla combined”.