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Tesla wins tax exemption in China ahead of price increases

The tax break will make the cars cheaper overall despite higher selling prices.

Tesla has been awarded a sales-tax exemption for vehicles sold in China, allowing the company to increase its retail prices without buyers paying more overall.

The government has waived the 10-percent purchase tax for numerous Model 3, Model S and Model X configurations.

The exemption coincides with across-the-board price hikes, raising the Model 3 entry point by 10,000 yuan (~$1,400 USD) to 439,900 yuan (~$61,470 USD). The Model X has experienced a similar jump of a few percent to the equivalent of $113,170 USD).

Sources recently told Reuters that Tesla is prepared to increase the numbers again if China follows through on its threat to levy more tariffs on US-manufactured vehicles imported to the country.

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