The new Tesla Model 3+ goes on sale at the Tesla Store in Hangzhou, Zhejiang Province, China on September 26, 2023.
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Tesla said on Thursday it is likely to raise the price of its Model 3 vehicle in Europe from July 1 after the European Union said it may impose temporary higher tariffs on electric cars imported from China.
“We expect demand to increase prices for Model 3 vehicles beginning July 1, 2024,” according to an announcement on Tesla’s website. “This is due to additional import duties on electric vehicles made in China and sold in the EU.”
The company has not disclosed how much it plans to raise Model 3 prices for Europe at this time.
The European Commission, the European Union’s executive arm, said this week it would raise tariffs on cars imported from China into the 27-nation bloc. The higher duties are the result of an EU investigation into China’s EV industry that says the value chain of battery-electric vehicles in China “benefits from unfair subsidies.”
If the EU does not reach a settlement with the Chinese authorities, these temporary obligations will come into effect on July 4. After four months this is called affirmative action.
Chinese EVs face tariffs of up to 38.1% so far. While some EV makers have received specific duties, the exact duty Tesla will pay on cars it makes in China and imports into the EU has yet to be told.
The commission said at this point, Tesla “could receive a separately calculated tax rate.”
Shanghai is one of Tesla’s largest gigafactories. In 2023, the American automaker will produce 947,000 vehicles from its Shanghai factory, 600,000 of which will go to the Chinese market and the rest will be exported, according to Chinese state media.
