The EU Commission has lowered the originally planned tariffs on Tesla vehicles produced in China following an investigation into alleged unfair subsidies for electric cars by Beijing. Instead of the previously estimated 20.8 percent, the tariffs will now be 9 percent, the Commission announced.

In July, the EU announced additional tariffs on electric cars from China to protect competition in Europe. However, this measure was met with criticism from both Beijing and some European automakers, who warned of the consequences of a potential trade war.

On Tuesday, the Commission also granted lower tariffs to certain European manufacturers with joint ventures in China. Volkswagen, Stellantis, BMW, Mercedes-Benz, and Renault are among the companies that benefit from this decision. However, the Commission rejected demands for further tariff reductions.

Beyond that, the EU Commission decided to forgo retrospective collection of tariffs. The maximum tariff rate is now set at 36.3 percent, slightly below the previously announced 37.6 percent.

The reaction on the stock market was not long in coming: Tesla shares lost 0.73 percent in NASDAQ trading on Tuesday and closed at $221.09.