Tesla could put the price of its vehicles up in China from September due to uncertainty around the value of the country’s currency. The new information was brought to light by two people familiar with the matter who said that the company was considering the price increases but did not share specific details on the price change.
As Tesla has to import all of the cars that it sells in China, it is a victim of the on-going trade war and the costs that this incurs. The firm is currently building Gigafactory 3 in Shanghai, China, but it doesn"t think it will be operational until the end of the year at the earliest. Last year, Tesla said that Gigafactory 3 would eventually churn out 3,000 Model 3 vehicles per week for the local market; this would help it offset trade war costs.
Tesla’s apparent plan to increase prices in China comes just days after U.S. President Donald Trump announced a new 10% tariff on another $300 billion worth of Chinese goods. This tariff was responded to by China devaluing its currency, making it easier for global companies to buy China’s goods.
Now that we’re well into August, it won’t be long until Tesla officially announces whether or not it will be adjusting the prices of its vehicles in China. Either way, Tesla believes its Gigafactory 3 will be operational by the end of the year which could act as a boon for Chinese customers.
Source: Reuters