Tesla Inc. won exemption from a 10% Chinese tax on automotive sales, following Chief Executive Officer Elon Musk’s visit to the country.
The exemption, which previously applied only to domestic makers of electric vehicles, affects all Tesla models sold in China, the nation’s industry ministry said Friday on its website. Shares of the pioneering battery-car maker jumped 3.7% premarket in New York.
During a two-day visit, Musk made an appearance at the World Artificial Intelligence Conference in Shanghai, talked with local authorities, and toured a new gigafactory being built about 70 kilometers away from the city center.
A Tesla spokesperson didn’t respond to a request for comment. Shares of the carmaker were trading at $230 before markets opened in New York, from a close of $221.71 on Thursday.
Tesla currently imports all of the cars it sells in China, but plans to make the Model 3, its best-selling car, at the new plant. The company on Friday raised car prices in China, as trade tensions weigh on the country’s currency and tit-for-tat tariff escalations.
The price of a basic level imported Model 3 sedan went up more than 2% to 363,900 yuan ($50,900), Tesla’s website showed Friday. Prices for basic level Model S sedans and Model X sport utility vehicles increased by a similar percentage, to 793,900 yuan and 809,900 yuan, respectively.