American Tesla announces that it will likely be forced to raise the price of its electric cars in Europe. This will be the consequence if the EU Commission makes good on its threat to raise tariffs on electric cars manufactured in China.
"We expect to have to raise the prices for Model 3 vehicles from 1 July 2024," Tesla writes on its website, reports CNBC.
The company does not say how high the potential price increase will be.
The EU Commission announced on Wednesday that punitive tariffs of up to 38.1 per cent will be imposed on Chinese-made electric cars from 4 July – unless China takes action towards a solution. The Commission believes that Chinese state subsidies are harming competition.
Tesla has one of its largest factories in Shanghai. Last year, 947,000 cars were produced there, of which 600,000 were for the Chinese market and the rest for export, reports CNBC, citing Chinese state-controlled media.
