Elon musk dances during the Tesla China-made Model 3 Delivery Ceremony in Shanghai. AFP

Elon Musk showed off striptease moves at the launch of Tesla's Model Y electric sports utility vehicle programme at its new Shanghai factory on Tuesday, where the company delivered its first cars built outside the United States to the public.

The $2 billion Tesla Inc factory started delivering cars in just 357 days, a record for global automakers in China. The first 10 customers from the public received their China-made Model 3 sedans on Tuesday.

Billionaire CEO Musk danced enthusiastically on stage at the event, then stripped off his jacket and flung it aside to reveal a T-shirt with a cartoon of the factory. In a tweet, he labelled the video "NSFW" - not safe for work.

He predicted that "ultimately Tesla Model Y will have more demand than probably all the other cars of Tesla combined", with his voice cracking with emotion at times while talking about the progress of the Shanghai factory.

The ceremony was attended by Shanghai Mayor Ying Yong and other senior government officials.

Tesla executives, however, did not provide further details on the progress of the China-made Model Y project. A Tesla representative declined to comment further.

Tesla's shares are trading close to their record high after it beat Wall Street estimates for vehicle deliveries in its fourth quarter. News of production ramp-up in its China factory and upbeat early deposits for its recently launched pickup truck have also supported its share price.

Construction of Tesla's first plant outside the United States began in January and production started in October.

The factory started with a production capacity of 150,000 Model 3 sedans and Tesla aims to push that to 250,000 vehicles a year, including Model Y, in the plant's first phase.