Tesla exempted from Chinese duties

Tesla exempted from Chinese duties

Tesla slashes car prices in China after tariff suspension

Description video:
CNBC’s Eunice Yoon reports on China’s decision to suspend auto tariffs starting January 1st, China’s November economic data and Tesla’s reaction to the decision.
Tesla exempted from Chinese duties

Tesla exempted from Chinese duties

China will exempt Tesla Inc electric vehicles from its purchase duty, according to Ministry of Industry and Information Technology (MIIT).

Tesla views China as one of his most important growing markets. Exemption from 10% duty can reduce the cost of an electric vehicle by 99,000 yuan (13 957 dollars).

The company expands its presence in China. This is evidenced by the imminent opening of the plant, as well as the visit Chief Executive Officer Elon Musk.

The Shanghai plant will be the first overseas factory for the corporation to prepare for a major sales boost in the Chinese market by promoting racing events, hosting DJ shows and launching Tesla’s line of stickers for chat apps..

Musk met with senior officials in August, including Vice President Wang Qishan of China and Minister of Transport.

He also publicly praised China in the midst of tensions with the United States, thanking the Shanghai and national governments for their support, naming national leaders «very thoughtful» and describing «astonishing» China’s progress in sustainable energy, transport and space.

«This year, for the first time, they made more orbital launches than the United States.», – Musk, who is also the CEO of rocket manufacturer SpaceX, tweeted in December. 

Although the company does not disclose sales figures by country, consulting firm LMC Automotive reported 23,678 Tesla vehicles sold in China in the first seven months of this year, nearly double the number of vehicles sold a year earlier..

The company’s shares rose 1.5% to $ 225.01 in early afternoon trading.