CEO Morning Brief

Tesla Expects to Raise Price of China-made Cars in EU After Duty Increase

Publish date: Fri, 14 Jun 2024, 10:36 PM
TheEdge CEO Morning Brief

BERLIN (June 13): Tesla expects to increase the price of its Model 3 because of European Union (EU) import duties on electric vehicles (EVs) made in China, the carmaker said on its website on Thursday.

The message, displayed on Tesla's website for countries including Germany, France, Ireland, Belgium and Hungary, urged prospective buyers to place their orders in June. The message did not specify the size of the expected price increase.

"We're anticipating a requirement for us to increase pricing for Model 3 vehicles as of 1 July 2024," it said. "This is due to additional import duties likely to be imposed on electric vehicles manufactured in China and sold in the EU."

The European Commission said on Wednesday that it will impose extra duties of up to 38.1% on imported electric cars made in China from July, prompting Beijing to warn that it would take measures to safeguard Chinese interests.

Tesla, which exports Model 3 cars from Shanghai to Europe, was one of several companies that the European Commission said had cooperated with its investigation and would therefore be subject to a lower tariff of 21%.

The Commission added that Tesla could receive an individually calculated rate of duty on its China-made EVs when definitive duties are imposed in November.

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Source: TheEdge - 14 Jun 2024

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