China exempts Tesla Vehicle Purchase Tax

On September 3, foreign media reported that the Ministry of Industry and Information Technology of China announced on August 30 that Tesla Electric Vehicles would be exempted from vehicle purchase tax.

According to Reuters on August 30, the Ministry of Industry and Information Technology of China issued a list of new energy vehicles exempted from vehicle purchase tax, including Tesla Model S, Model X and Model 3.

According to the Financial Times, a total of 16 Tesla models have been listed as "new energy" vehicles, including electric vehicles and some hybrid vehicles, thereby exempting 10% of vehicle purchase tax. Before that, Musk went to Shanghai last week to attend the World Conference on Artificial Intelligence.

The website of World Daily of the United States notes that in the past only domestic electric vehicle manufacturers in China enjoyed tax exemption on vehicle purchases.

Tesla Wechat Public Number said that after 10% of the vehicle purchase tax was exempted, the maximum savings on Tesla car purchase could be about 99,000 yuan. Tesla sees China as one of its most important and growing markets.

The Financial Times believes that the US tariffs imposed on China have hit Tesla's sales in China, and the company hopes to minimize the impact of these tariffs by making cars in China. Musk said Tesla plans to start producing the company's mass-market Model 3 in China by the end of this year.