On Tuesday, the European Union announced a reduction in the planned tariffs on Tesla vehicles imported from China, lowering the rate from 20.8% to 9%.

Additionally, the EU has also decreased import duties for several other Chinese electric vehicle manufacturers.

In June, the EU had indicated its intention to impose higher tariffs on Chinese electric vehicle imports, citing concerns that these vehicles benefit significantly from unfair subsidies and pose a potential economic threat to European EV manufacturers.

The European Commission, which serves as the EU's executive body, reached a preliminary conclusion that the value chain for battery-electric vehicles in China is heavily subsidized unfairly, leading to the recommendation of provisional countervailing duties on these imports.

On Tuesday, the Commission revealed its draft decision to implement definitive countervailing duties on battery electric vehicles from China.

Following feedback from stakeholders regarding the proposed tariffs, the regulatory body stated it would make minor adjustments to the duty rates based on valid comments received about the provisional measures.

As a result, Tesla's electric vehicles manufactured in China will now incur a 9% import duty to the EU, a significant decrease from the previously anticipated 20.8% rate outlined in a prior decision in July. Following this announcement, Tesla's shares experienced a 1% increase in premarket trading in the U.S.

The EU's decision to assign Tesla a reduced individual duty rate as a Chinese exporter comes after the company made a formal request for a recalibration of the tariffs to account for specific subsidies it receives in China. Tesla did not provide immediate comments when approached by CNBC on Tuesday.

Other manufacturers, such as BYD, saw their tariff rates adjusted from 17.4% to 17%, Geely from 19.9% to 19.3%, and SAIC from 37.6% to 36.3%. BYD, Geely, and SAIC have not yet responded to requests for comment.

The Commission announced that companies collaborating with the EU in its inquiry regarding China's substantial subsidies for electric vehicles will incur tariffs of 21.3%.

This rate exceeds the 20.8% that cooperating companies would have been subject to under the EU's earlier decision made in July.

Conversely, companies that do not participate in the investigation will be subjected to import duties of 36.3%, a reduction from the previous rate of 37.6%.