Tesla Raises Model 3 Prices in Europe After EU Tariffs

Tesla announced on Wednesday that it has raised the prices of its Model 3 cars in European countries, including Germany, the Netherlands, and Spain, by about 1,500 euros ($1,622). This price hike follows the European Union’s imposition of tariffs on electric vehicles (EVs) made in China.

Background on the Tariffs:

Tesla, which manufactures the Model 3 in Shanghai and is the leading exporter of EVs from China, had previously warned in June that it might raise prices due to the tariffs. The European Commission imposed these tariffs on July 4 to counter what it described as a potential influx of unfairly subsidized EVs from China. Beijing has rejected this characterization.

The provisional tariffs will remain in effect until the European Commission decides whether to impose final duties by November. Depending on the carmaker, the tariffs vary, with rates of up to 37.6%.

Impact on Tesla:

According to the Commission, Tesla, classified as cooperating with the EU’s investigation, received a 20.8% tariff but has requested a recalculation of its rate.

BMW has also appealed to Brussels to reduce the tariff on its China-made electric Mini, which is currently subject to the highest duty, to 20.8%.