Tesla to Raise Model 3 Prices Due to New EU Import Duties

Tesla announced it expects to raise the price of its Model 3 vehicles in Europe due to new European Union import duties on electric vehicles manufactured in China.

The company urged potential buyers to place their orders in June, noting that the price increase will take effect on July 1, 2024.

Reasons for Price Increase:

Tesla attributed the upcoming price hike to the additional import duties the European Commission plans to impose on electric vehicles made in China.

These duties, which could reach up to 38.1%, are part of the EU’s measures against what it considers excessive subsidies provided by Beijing to Chinese EV manufacturers.

Impact on Tesla:

While Tesla exports Model 3 cars from its Shanghai plant to Europe, it will face a lower tariff of 21% due to its cooperation with the EU’s investigation.

This cooperation could also potentially result in an individually calculated rate of duty for Tesla when the definitive duties are established in November.

Official Communication:

The message on Tesla’s website for countries like Germany, France, Ireland, Belgium, and Hungary emphasized the urgency for customers to place their orders before the end of June to avoid the impending price increase.

However, Tesla did not specify the exact amount by which the prices will rise.

Broader Context:

The European Commission’s decision to impose these tariffs is part of a broader strategy to protect EU-based automakers from competition with heavily subsidized Chinese electric cars.

Beijing has expressed its intent to monitor the situation closely and to take measures to protect Chinese interests.