Chinese authorities announced on Friday thathas won an exemption from a 10% purchase tax, which will reduce the price that customers will have to pay for a Model 3, Model S or Model X.

Thirty-four carmakers were on the exemption list, which was released by the Ministry of Industry and Information Technology and State Taxation Administration. The list mainly applies to cars made by joint ventures between Chinese and foreign companies, likeand. Tesla is the only foreign manufacturer being granted an exemption on its own.

The exemption is designed to benefit companies that make cars using new forms of energy, like electric vehicles. It applies both to cars made in China, as well as imported ones.

The tax break was announced the same day Musk met with Chinese Transport Minister Li Xiaopeng, according to a statement posted on social media by the Transport Ministry.

The deal is significant in part because of how the US-China trade war has escalated. Beijing announced last month that it plans to resume tariffs of 25% on US imports of automobiles and 5% automobile parts in December.

main plant in Fremont, California to produce vehicles for the world's biggest car market. In the past, the company has While Tesla has plans for a major facility in China, it still relies on itsmain plant in Fremont, California to produce vehicles for the world's biggest car market. In the past, the company has slashed its prices to absorb the cost of Chinese tariffs.

Tesla's Gigafactory under construction in Shanghai, China.

new manufacturing plant in Shanghai — Tesla's Gigafactory — has been under construction The carmaker has ambitious plans for China. Anew manufacturing plant in Shanghai — Tesla's Gigafactory — has been under construction since the start of the year . It's the company's first factory outside the United States. It's also the first time China has let a foreign automaker open a plant in the country without a local partner.

Musk told analysts on a July earnings call that he expects the long-term demand for the Model 3 at that factory to be about 5,000 units per week. The Model 3 is Tesla's best-selling car.

Alibaba BABA Speaking at a conference in Shanghai withchairman Jack Ma on Thursday, Musk said he was in town to visit the factory and was impressed by the progress he'd seen so far.

Tesla's China team has done a "mind-blowing" job, Musk said. "I've never seen anything built so fast in my life before, to be totally frank. And I've seen some crazy things ... I really think China is the future."