Tesla to Increase Model 3 Prices in Europe Due to Higher Tariffs


Tesla (NASDAQ:TSLA) plans to raise prices for its Model 3 in Europe starting July 1, 2024, in response to potential higher tariffs on imported electric cars from China, as indicated by the European Union (EU).

Notices about the price increase have been posted on Tesla’s websites in several European countries, including Germany, where Tesla operates a factory, and Hungary. The U.S. automaker has not yet specified the exact price hike for the Model 3, which currently starts at $44,000 in Germany.

The European Commission, the EU’s executive body, recently announced plans to raise tariffs on cars imported from China to the 27-nation bloc. This decision follows an EU investigation that found unfair subsidies in China’s battery-electric vehicle sector. If not resolved, provisional duties will be enforced on July 4, 2024, with definitive measures expected four months later.

Chinese electric vehicles have been subject to tariffs of up to 38.1%. Tesla, which exports Model 3 cars from Shanghai to Europe, cooperated with the EU investigation and initially faced a lower tariff of 21%. TSLA might receive an individually calculated duty rate when definitive tariffs are imposed in November.

Shanghai is home to one of Tesla’s largest Gigafactories. In 2023, the company delivered 947,000 vehicles from this factory, with a significant portion exported outside China.

Featured Image: Megapixl

Please See Disclaimer

About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.