China agrees on solution to Tesla customs issue: source

FILE PHOTO: A Tesla logo is seen at a groundbreaking ceremony of Tesla Shanghai Gigafactory in Shanghai, China January 7, 2019. REUTERS/Aly Song

(Reuters) – China’s customs authorities have accepted electric carmaker Tesla Inc’s plan to remedy problems with the clearance of imported cars, a source familiar with the matter told Reuters.

Tesla shares fell more than 5 percent after financial publication Caixin reported earlier that China had suspended customs clearance for the company’s Model 3 sedans, citing various irregularities including improper labeling of the vehicles.

The source did not give any further details of the terms of how the issue had been resolved.

(This story has been refiled to correct the sourcing in the first paragraph).

Reporting by Sonam Rai and Vibhuti Sharma in Bengaluru; Editing by Patrick Graham and Arun Koyyur

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