Tesla announced on Thursday that it is likely to raise the prices of its Model 3 vehicles in Europe starting July 1, following a warning from the European Union about potential higher tariffs on electric cars imported from China.
According to a notice on Tesla's website, "We anticipate the need to adjust pricing for Model 3 vehicles effective July 1, 2024, due to anticipated additional import duties on electric vehicles made in China and sold in the EU." The company did not specify the extent of the price increase for the Model 3 in Europe at this moment.
The European Commission and the executive body of the EU recently announced an increase in tariffs on cars imported from China to the 27-nation bloc. These elevated duties stem from an EU investigation into the Chinese electric vehicle sector, which found that the value chain of battery-electric vehicles in China receives unfair subsidies.
If there is no resolution between the EU and Chinese authorities, these interim tariffs will take effect on July 4, followed by definitive measures four months later. Chinese electric vehicles currently face tariffs of up to 38.1%.
While certain EV manufacturers have been assigned specific duties, Tesla has yet to receive the exact tariff rate for vehicles produced in China and imported to the EU. The Commission mentioned that Tesla may be subject to an individually calculated duty rate.
One of Tesla's major Gigafactories is located in Shanghai. In 2023, the American automaker reportedly delivered 947,000 vehicles from its Shanghai plant, with 600,000 destined for the Chinese market and the remainder exported, as reported by Chinese state media.
Source: CN
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