Tesla Raises Model 3 Prices in Europe Following EU Tariffs

Tesla has increased the prices of its Model 3 cars by approximately 1,500 euros in several European countries after the EU imposed tariffs on EVs manufactured in China. The tariffs, which range up to 37.6%, aim to counter potential subsidies. Tesla and BMW are seeking lower tariff rates.

Tesla has raised prices of its Model 3 cars in European countries including Germany, the Netherlands, and Spain by about 1,500 euros ($1,622) after the EU imposed tariffs on EVs made in China, the U.S automaker said on Wednesday.

Tesla, which makes the Model 3 in Shanghai and is the top exporter of EVs from China, had warned in June it might lift prices due to the tariffs imposed on July 4 by the European Commission to counter what it described as a potential flood of unfairly subsidised EVs. Beijing rejects this characterisation. The tariffs, which are provisional and will be applied until the Commission decides whether to apply final duties by November, are up to 37.6% depending on the carmaker.

Tesla was classed as cooperating with the European Union's investigation into the matter and so was given a 20.8% tariff but requested a recalculation of its rate, according to the Commission. BMW has also asked Brussels to cut the tariff for its China-made electric Mini, currently subject to the highest duty, to 20.8%.

($1 = 0.9243 euros)

(With inputs from agencies.)