The electric car, dubbed the Tesla Model S, is a vehicle with an estimated range of 150 kilometres.
The Model X, a larger sedan, has a range of 125 kilometres.
“We are very happy to be on the ground and to have this success,” said Musk, who founded Tesla in 2004.
Musk has been critical of the federal government’s plan to phase out coal-fired power plants, saying it will cost the Canadian economy billions.
“It will cost billions of dollars to get rid of coal, and that’s not good for the planet or our economy,” Musk said during a 2016 TED conference.
Musk said he plans to keep the company in business through his personal investment company, SolarCity, and plans to build the Tesla factory in Nevada, where it will employ 100 people.
He said the company will hire as many as 3,000 workers for the facility.
Musk also said the car will be made in the U.S. by General Motors and Nissan.
The company’s CEO has also criticized federal policies that could harm the electric car industry.
“They are not making EVs anymore, they are just taking out the competition,” Musk told Reuters.
Musk’s comments came after Musk met with Canadian Prime Minister Justin Trudeau in Vancouver last week.
Trudeau’s government has also proposed a new tax on imports of electric vehicles, which is likely to be a blow to Tesla.
Trudeau has also made the case for the Canadian government to encourage private companies to build electric vehicles.
“The fact that we’re seeing these electric cars in the United States, and we’re exporting them to the United Kingdom, is really encouraging to our business,” Trudeau said during the meeting.