The EU plans to reduce the tariff on Chinese-made Tesla (TSLA.US) cars to 9%.

The EU unveiled its latest move to resist Chinese subsidies to the electric vehicle industry on Tuesday, with a draft decision to impose provisional anti-dumping duties on imports of pure electric vehicles from China. The EU said it planned to impose an additional 9% tariff on Tesla (TSLA.US), lower than the 20.8% previously expected. MG maker SAIC Motor, Geely, the parent of Volvo, and BYD faced additional tariffs of 36.3%, 19.3% and 17% respectively, all below the levels previously announced.

Officials said they would continue to consult with manufacturers before voting on the tariffs, which are due to start in November.

Other companies that co-operated with the EU investigation but were not sampled by investigators will face a tariff of 21.3%, while those that did not co-operate will face 36.3%. The tariffs will be levied on top of the 10% tariff Chinese exporters have already paid.

For Tesla, the 9% tariff is a relatively welcome development, as it is lower than the tariffs faced by other manufacturers. EU officials said the calculation was partly based on the fact that the Chinese government seemed to have reduced subsidies to foreign companies.

Tesla has benefited from land use rights, tax breaks and various forms of subsidies, including national subsidies that all exporters can claim, EU officials said.

Tesla shares were up 1.73% at $226.54 at the time of writing, having fallen 10% this year.

Comments on the proposal must be submitted by August 30 and hearings requested. If no member state blocks the tariffs in a binding vote, the EU will publish the final tariffs by October 30. The tariffs will last for five years and could be extended after review.

The EU and China have held talks in recent months to explore whether a different solution could be found. The EU said any such solution would need to be in line with WTO rules and address the subsidy issue at its root.

A number of member states, including Germany and Hungary, have resisted the tariffs, but a majority of member states would be needed to block them.

The EU also said it planned to give lower tariffs to joint ventures that did not export during the investigation. These companies will face the same tariff as their joint venture partners.

The EU had asked target companies to provide guarantees for provisional tariffs, but officials said it would not retroactively impose those tariffs. Officials said the tariff rates could still change before they are finalised.