Tesla is getting a break in China.

The automaker learned Friday that its electric vehicles will be exempt from a 10 percent sales tax.

The Chinese Ministry of Industry and Information Technology made the announcement on its website.

No reason was provided for the exemption, which according to Tesla’s estimates, shaves off up to nearly $14,000 from the purchase of a car in China.

That reduction could offset any price hikes Tesla might have to tack on if Beijing goes through with planned retaliatory tariffs on U.S. goods.

China has become an important market for Tesla. Although the company doesn’t give out official statistics, one consultancy firm estimates nearly 24,000 Tesla cars were sold in China between January to July, which is nearly double what it sold the year before.

To meet demand, Tesla is investing in a factory in Shanghai, which it plans to quickly ramp up to produce 250,000 vehicles a year inside that country.

Shares of Tesla jumped as high as five percent on the tax-relief news.

source https://news.yahoo.com/china-exempt-tesla-cars-sales-164302470.html?.tsrc=rss