TESLA Inc. has started taking orders for its Model 3 sedan in China for a deposit of 8,000 yuan (US$1,153.60), according to the electric carmaker’s China website.

“Probably some deliveries in March, but April is more certain,” chief executive officer Elon Musk said after a Twitter user asked when the deliveries in China would begin.

The company has been banking on its Model 3 sedan, the performance of which is seen crucial to the carmaker’s future.

China is the largest market for electric vehicles and most forecasters predict that its sales in the country will speed up rapidly as government regulation drives toward a goal of 100-percent electric vehicles by 2030.

Tesla had signed a deal with Shanghai authorities in July to build its first factory outside the United States, which would cost around US$2 billion to construct and would double the size of its global manufacturing.

The Shanghai Gigafactory aims to manufacture Model 3 and Model Y cars, with annual capacity of 250,000 vehicles, according to a filing.

Tesla is also developing plans to start producing about 3,000 Model 3s per week in Shanghai in the initial phase of its Gigafactory 3 to reduce the impact of tariffs.

Tesla said that it would raise capital from Asian debt markets to fund the construction of the Shanghai Gigafactory.

For Tesla, which is rapidly burning cash and struggling to turn a profit, China is a key market. The country accounted for about 17 percent of its total revenue last year.(SD-Agencies)