Bloomberg Tax
Dec. 27, 2019, 6:53 AM

Tesla Scores a Win in China as Local Model 3 Gets Tax Exemption

Chunying  Zhang
Chunying Zhang
Bloomberg News

Tesla Inc. won exemption from a 10% purchase tax for its China-built Model 3 sedans, a potential boon for Elon Musk’s company as it prepares to begin deliveries of locally manufactured electric cars in the country.

The Model 3 was included on a list of models qualifying for the exemption published by the Ministry of Industry and Information Technology on its website Friday. An exemption means buyers will need to shell out less. Tesla said in October the locally built Model 3 will be priced from about $50,000.

The Tesla Inc. Gigafactory in Shanghai, China.
Photographer: Qilai Shen/Bloomberg

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