Earlier this month, China said it would reinstate some car tariffs it paused in April, including a 25 percent levy on vehicles from the US and a five percent tariff on auto parts. They're set to come into force December 15th as part of a wave of tariffs China announced in response to the latest US round of levies on imports from the Asian superpower. Tesla and other carmakers face total tariffs of as much as 50 percent on vehicle imports in China.
The company also raised prices on the base Model X in the country Friday, from 790,900 to 809,900 yuan (up from $110,512 to $113,167), and the Model 3 from 429,900 to 439,900 yuan ($60,069 to $61,467). It may increase prices on its cars again when the tariffs come into force. Meanwhile, Tesla is building a factory in Shanghai, and CEO Elon Musk visited the country this week.
Update 8/30/2019 11:50 AM ET: Updated to clarify the exemption is for the purchase tax, not the tariffs, and to note the Tesla price changes in China.