SHANGHAI -- Tesla Inc. won exemption from a 10 percent Chinese tax on automotive sales, following CEO 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. The electric-car maker’s shares jumped 3.7 percent before the start of regular trading 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 35 miles from the city center.
A Tesla spokesperson didn’t respond to a request for comment. Shares of the carmaker rose 1.8 percent to close the day at $225.61.
Tesla currently imports all of the cars it sells in China but plans to make the Model 3, its best-selling vehicle, at the new plant. The company on Friday raised prices in China as trade tensions weigh on the country’s currency.
The price of a basic level imported Model 3 sedan went up more than 2 percent to 363,900 yuan ($50,900), Tesla’s website showed Friday. Prices for basic level Model S sedans and Model X crossovers increased by a similar percentage, to 793,900 yuan and 809,900 yuan, respectively.