Tesla's Made In China Long Range Model 3 Now Qualifies For Chinese Tax Exemption

The Chinese government has been supporting electric vehicle adoption via tax credits for a while, probably due to their smog and pollution issues. Previously, only the lower ranged version of the Tesla Inc TSLA Model 3 qualified. Now, the long-range version of the car has been added to the list.

The Ministry of Industry and Information Technology of China (MIIT) regularly publishes a catalog of recommended "new energy" vehicles for purchase. These vehicles are eligible for the government's tax exemption. The long-range Model 3 has previously been excluded, but has now been added to the catalog.

Benzinga's Take: China already has more EV sales than any country. Tesla was already a large share of this, with the Model 3 taking over 23% of EV sales in China in June. With new tax exemptions, it may encourage customers to order the more expensive long-range car, giving Tesla more profit.

Tesla will hold its second-quarter earnings call after market close today.