Tesla Secures China Tax Exemption for Model Y

Tesla has secured tax exemptions in China for its Model Y compact SUV, ahead of its production there, according to a media report.
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Tesla  (TSLA) - Get Report said on Monday that it secured tax exemptions in China for its Model Y compact SUV, taking the electric-vehicle maker a step closer to delivering to customers in China, a media report said.

China's Ministry of Industry and Information Technology included the Model Y in its 12th batch of recommended “new energy vehicles” – making the electric SUV eligible for electric-vehicle incentives, including tax exemptions, in the country.

Tesla's Model Y will be manufactured at its Shanghai Gigafactory, Electrek reported. 

Earlier Monday Tesla had received approval from Chinese authorities to begin selling its Shanghai-made Model Y sport utility vehicle in the country. It earlier this month had applied for permission to sell the Shanghai-made Model Y, Reuters reported.

The approval was published on the website of China's Ministry of Industry and Information Technology.

Tesla currently sells its Model 3 electric cars in China and has been ramping up manufacturing capacity in Shanghai to make the Model Y. 

Tesla reportedly delivered 13,000 vehicles in the country last month. 

Tesla plans to start building electric-vehicle chargers at its Shanghai plant in 2021. 

Last week, Tesla said it would recall 9,537 vehicles, including Model X and Model Y SUVs after a U.S. agency said they may have been defective.

The decision by the National Highway Traffic Safety Administration included 401 Tesla Model Y vehicles from 2020. The agency said the car had loose bolts.

Tesla's share price has surged this year, driven most recently by its approaching inclusion in the S&P 500 index. Tesla will join the index on Dec. 21.

Shares of the Palo Alto, Calif., company at last check dropped 1.2% to $579.05.