Tesla Forced To Raise Model S And Model X Prices In China By Over $20K

Tesla exports more electric vehicle to China than any other automaker today, but the company’s exports are likely to slow down as it raises the price of the Model S and Model X significantly due to rising tariffs as part of the current escalating trade war.

For a while, it looked like Tesla was going to escape the trade war between the US and China, and now quite frankly the rest of the world.

The company was preparing a massive push in China as import duties were planned to fall and local manufacturing is coming.

Prices of the Model S and Model X were decreased by 40,000 yuan to 90,000 yuan (~$6,000 to ~$14,000 USD) back in May.

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SanJoseDriver - 7/9/2018 10:09:15 AM

-5 Boost

Trade war = higher prices, fewer jobs, and less money flowing back to the US, everyone loses on both sides

mre30 - 7/9/2018 10:05:28 PM

+2 Boost

I agree with SanJoseDriver : everyone loses in a trade war.

Vette71 - 7/9/2018 1:22:07 PM

+5 Boost

As soon as China stops insisting on 50% ownership of any plant there and access to the intellectual property around the product for a foreign firm makes in China and reduces its tariffs on our products coming in to the level we tax their products coming to the USA then the trade war is off. Read his book. Its all there. In his book the first move he makes is always something totally outrageous (trade war) that isn't the ultimate goal (level playing field).

Tesla can always open a plant in China 50% owned by Geely and make all the parts including batteries in China and then do business. The jobs all go to China. That's how they work. Take it or leave it.

EVisNow - 7/9/2018 2:28:12 PM

-3 Boost

If Trump really wants outrageous, why not go for 25%, 50% or even 100% on ALL ELECTRONICS from China. Or go after ALL PLASTICS. That would wipe out all trade deficits from China and cripple their economy. If North Korea "talks" are any indication, Trump is nothing but a showman with big talk but who can't firmly stand on any subject and can't articulate a complex thought - maybe because he doesn't have a stand or any complex thought to begin with.

If America has a good and strong leader then I would definitely stand behind a sound "trade war" against China. Trump is not it.

EVisNow - 7/9/2018 3:11:28 PM

-2 Boost

@coch: on the trade front, I agree with you. There has been nothing from the previous 5 Presidents going back Reagan's time.

Unfortunately, nothing else about Trump that represents the country both domestically and on the world stage.

SanJoseDriver - 7/9/2018 7:12:06 PM

-2 Boost

This seems like a huge gamble to take. China already agreed to allow foreign companies to open up car factories without a 50% partner AND droped car import taxes from 25% to 10%. The new 40% tax was a retaliatory move to other (non-car) tariffs that were imposed. When Tesla opens a factory in Shanghai in a couple years it will be a non-issue. For now, it's going to mean far fewer sales for both countries. Both $$$ and US jobs will be lost if this does not pan out.

Also, Trump is not that great of a businessman. He increased his fortune 300% since 1987. If he invested in the S&P 500 index fund, it would have been a 1,336+% return. Basically if he had done nothing with his money but leave it in the lowest risk index he would have been 4x better off.

I really hope Vette is right and this pays off, otherwise the economy can take a negative turn real fast.