TESLA likely increases Model 3 cost due to China tariffs.
The American electric car manufacturer, Tesla, plans to increase the cost of its Model 3 in the European Union because of the upcoming tariffs on Chinese electric cars.
As mentioned on their website on Thursday, "we anticipate raising the prices for the Model 3 starting July 1, 2024. This change is due to the probable imposition of additional tariffs on electric vehicles imported from China and sold in the EU." The company hasn't specified how much the price will go up. Tesla produces the vehicles meant for the European market in its Shanghai facility.
On Wednesday, the European Union Commission revealed their intention to impose tariffs of up to 38.1% on top of existing tariffs. These tariffs will start on July 4 if an agreement with China can't be reached by then. Car manufacturers from the West, like Tesla and BMW, are classified as cooperating enterprises.
For these cooperating companies, a 21% surcharge will be imposed. Companies that refuse to cooperate with the EU will be subject to a 38.1% surcharge. Tesla is the only business to file for an individual tariff application.
Read also:
- The anticipated price increase for the Tesla Model 3 in Europe, set to take effect on July 1, 2024, is due in part to the expected tariffs on Chinese electric vehicles imported into the EU.
- Tesla, being classified as a cooperating enterprise by the European Union, might face a 21% surcharge on top of existing tariffs due to the China tariffs on vehicles it imports.
- In response to the potential tariffs, Tesla, which manufactures vehicles for the European market in its Shanghai facility, has filed an individual tariff application with the EU, indicating its intention to adapt to these China tariffs by possibly adjusting the Model 3's price in Europe.
