Hello and welcome to the Friday August 30th

2019 edition of Tesla Daily on official Tesla Podcast. My name is Rob Maower. Today we are talking

about a sales tax change in China as well as a little bit more information on Tesla

insurance. Tesla stock with a strong close to the week finishing up 1.76% to $225.61.

That compared to the NASDAQ down 0.13%.

Good news from China was what drove the stock today, peeking as high as around $232 per share,

as China's Ministry of Industry and Information Technology announced that Tesla will be

exempt from a 10% purchase tax in China on all Tesla vehicles.

So very exciting news and I think especially encouraging to see this apply both to local production as well as imported.

My understanding of this purchase tax that Tesla is being

exempted for is that it applies to all vehicle sales in China, clearly with some

exceptions generally domestically produced electric vehicles.

So it looks like Musk's China trip has been productive to say the least.

This exemption comes after a meeting between Musk and China's transport minister.

And this is some serious money that we're talking about. If Tesla sells

150,000 vehicles next year in China, we know that the Gigafactory Shanghai

production rate is supposed to be 3,000 per week, hence the 150,000, and then if we just say a $50,000

average selling price, a 10% purchase tax exemption means that China's government is exempting

Tesla from $750 dollars in tax on that base.

If Tesla can remain exempted, then that means that will happen annually and it should only

increase over time.

So that is real value that Tesla can either capture

...