The Chinese government reduced electric vehicle subsidies by 10 percent on Thursday, granting a three-month transition period for the new pricing to kick in.

Tesla’s website shows that its Shanghai-made standard range Model 3 sedan will see its price increase by about $650 to $42,900, while its long range Model 3, which it plans to roll out in June, will be priced about $700 more expensive than its previous price point, at $48,600.

Tesla began delivering vehicles from its $2 billion Chinese Gigafactory at the end of 2019, less than a year after breaking ground. The electric automaker’s stock was goosed earlier this month in part by a 450 percent month-over-month jump in Chinese car registrations.

The subsidies will apply only to passenger cars costing less than 300,000 yuan — about $42,300 — after the transition period. China will also further reduce subsidies by 20 percent in 2021 and 30 percent in 2022.

Hit by the coronavirus epidemic, China’s overall car sales fell 42 percent in the first three months compared with a year earlier. But the auto industry expects sales to recover as the government promises more supportive policies to boost consumption.

Shares of Tesla were trading flat Friday morning, and are up more than 40 percent in the past month, to $709.15.