Automotive News Europe — 2024-07-11
Automotive Industry
Tesla was due to receive a 20.8% additional tariff but is said to have appealed the figure.
Tesla has raised the prices of its Model 3 cars in European countries including Germany, the Netherlands and Spain by about €1,500 ($1,622) depending on the variant of the model, due to the European Commission's provisional tariffs on China-made EVs.
The automaker had warned in June 2024 that it may raise prices from July 2024 as a result of the tariffs, which went up as much as 37.6% depending on the automaker.
Tesla was due to receive a 20.8% additional tariff on its vehicles but has made a request for a recalculation of its rate, according to the European Commission.
BMW Group has also asked for a recalculation of the rates on its Mini EVs that are built in China.
A round of cost-cutting by Tesla starting in late 2022 raised fears of a broader price war.
Prices on the Model 3, which is built in Shanghai, and the Model Y SUV, which entered into production in Germany that same year (2022), were cut by up to 17% at the beginning of 2023 in Europe's No. 1 market, Reuters reported, setting off fears of a price war among other automakers – some of which did lower their EV prices.
Tesla has also calibrated its prices and model specifications in Europe to ensure customers could take advantage of local government EV subsidies.