China’s General Administration of Customs decided to suspend all Tesla Model 3 imports into the country last week, claiming that the vehicles didn’t have the required Chinese language warning signs and had missing or incorrect nameplate labels.
Now, an official with the customs authority told Reuters that the suspension has been lifted. “We can confirm that the warning notice on Tesla has been canceled,” said the official, who said his name was Tao.
While the EV-maker declined to comment, two separate sources familiar with the issue told Reuters that the suspension had indeed been lifted after Tesla made the necessary modifications to the cars.
When the suspension was first announced, Tesla said that a solution was already being worked out with authorities. On that very same day, Tesla shares dropped more than 5% as word got out about the issue, only to regain 3% following talks of a solution.
Model 3 deliveries to China began at the end of last month, and with imports green-lit yet again, Tesla can continue to push forward in one of its key markets – where sales had already been affected by trade tensions with the U.S.
Currently, all new Tesla models sold in China are imports. However, that will soon change as the automaker is in the process of building a factory in Shanghai to manufacture the Model 3 locally and in turn, help minimize the impact of tariffs. According to Elon Musk, initial construction for the Shanghai plant will be completed this summer and Model 3 production will commence toward the end of the year.