Tesla may be raising their prices in China soon
Tesla will increase its prices in China from Friday of this week, slightly earlier than originally planned, according to media reports. The main focus will probably be on imported vehicles from the USA. But the Gigafactory 3 would also be affected.
According to Reuters, the electric car manufacturer is considering a further price increase in December with reference to anonymous sources if Chinese special tariffs for cars manufactured in the USA come into force. The carmaker has not yet commented on the report.
Tesla currently imports all cars sold in China. The Californians are not only affected by customs duties, but are also subject to currency fluctuations. For this reason, prices had to be adjusted several times as early as 2018. As Reuters has now learned, this is again the reason: because the yuan has fallen considerably against the US dollar, Tesla wants to compensate for this with new prices starting in September, according to the source.
Last week’s announcement by the Chinese Ministry of Commerce that in December customs duties on vehicles would be raised again to 25 per cent and those on car parts to five per cent could also affect other markets at Tesla. A source told Reuters that Tesla would try to deliver more cars to China before the tariff increase. An understandable step, but then the likelihood of capacity shortages elsewhere increases.
Improvement is in sight at least for the Model 3: As allegedly recent photos from the Gigafactory 3 near Shanghai show, the first production tests have already taken place there. The photos at least clearly show bodyshells of the Model 3 – but it is unclear whether they have already been manufactured in the factory or flown in from the USA, for example to calibrate the robots. A start of series production in the fourth quarter nevertheless seems possible – as originally announced. The pace at the Gigafactory 3 is enormous, the construction work only started seven months ago.
Meanwhile in China 🇨🇳 this happens when you are parked at Tesla Supercharger and NOT plugged in. Let me know what you think?#Tesla #TeslaChina #Supercharger #China #特斯拉 #中国 $TSLA pic.twitter.com/KkOBuWAIyL
— Jay in Shanghai 🇨🇳 (@JayinShanghai) July 25, 2019
Despite the local production in China, the higher customs duties would not pass Tesla by without a trace: The Model S and Model X will continue to be imported (albeit in smaller quantities), and Model 3 production will also initially depend on deliveries of parts from the USA. Tesla, however, wants to gradually switch the Shanghai plant to local suppliers. This will probably also affect the batteries, which would then no longer come from Panasonic. According to a report last week, Tesla is allegedly in talks with LG Chem and CATL about supplying cells for the Gigafactory 3.