Tesla has increased prices for its Model 3 cars in several European countries, including Germany, the Netherlands, and Spain, by approximately 1,500 euros ($1,622), the U.S. automaker announced on Wednesday.
The price hike comes in response to tariffs imposed by the European Union on electric vehicles manufactured in China, where Tesla produces its Model 3 vehicles in Shanghai. Tesla, a major exporter of EVs from China, had previously indicated potential price adjustments due to these tariffs, which were enacted on July 4 by the European Commission.
The Commission’s tariffs, ranging up to 37.6% based on the carmaker, aim to counter perceived subsidies benefiting Chinese EV manufacturers. Beijing has contested these allegations, rejecting claims of unfair trade practices.
Tesla, categorized as cooperative in the EU’s investigation, initially faced a 20.8% tariff but has requested a reassessment of its rate, according to the Commission’s statements.
In a similar move, BMW has also petitioned the European authorities to lower tariffs on its China-manufactured electric Mini, currently subjected to the highest duty rate.
The European Commission plans to review the provisional tariffs and decide on permanent duties by November, reflecting ongoing trade tensions and regulatory scrutiny in the global electric vehicle market.
