Tesla has warned customers it might be forced to increase the price of the Model 3 in Europe starting July 1, 2024, in response to the European Union’s decision to impose provisional higher tariffs on electric vehicles (EVs) imported from China.
According to a message posted on Tesla’s Design Studio in Europe, the company says, “Model 3 price is likely to increase from 1 July 2024 due to expected import duties.”
The decision to potentially adjust prices follows an announcement earlier this week of provisional tariffs on Chinese-made EVs, which are set to take effect on July 4, 2024, unless a resolution is reached with Chinese authorities.
The specific tariff rate that Tesla will face has yet to be determined. The European Commission indicated that, at the request of Tesla, the automaker might receive an individually calculated duty rate, although the exact amount remains unknown. Currently, Chinese EVs are subject to tariffs of up to 38.1%. Other EV manufacturers have received specific duties, but Tesla’s duty rate is still pending.
Tesla’s Giga Shanghai is the company’s primary export hub. In 2023, the automaker delivered 947,000 vehicles from the Gigafactory, with 600,000 units sold in the Chinese market and the remaining 347,000 units exported to other regions, including Europe.
