Fifteen Model 3 sedans were handed over at the company's so-called "Gigafactory" near Shanghai.
It comes as Elon Musk's company aims to secure a significant slice of the world's biggest car market.
Tesla's move into the country comes as the trade war has forced other American companies to shift production out of China.
US technology giants Apple, Google, HP, and Dell have all reportedly started the process of moving production from China to other Asian countries.
