The price of the Tesla Model 3 will increase in July 2024!

The upcoming increase in import taxes on electric cars produced in China will impact the Tesla Model 3.

Another setback for the Tesla Model 3. Starting July 4, 2024, the European Union will raise its wall to prevent the influx of Chinese electric cars. True, it will be to a lesser extent than in the United States, where the Biden administration increased the tax rate from 25% to 100%, but still significant. In Europe, these taxes will increase from about 10% to nearly 50%, depending on the models and their ecological score.

Thus, all cars from the giant SAIC (notably MG) will face a tax rate of 48.1% (+38.1%), compared to 30% (+20%) for Geely (Volvo, Smart, Lotus, Zeekr, etc.) and 27.4% (+17.4%) for BYD. All other manufacturers will see a 21% increase, bringing their tax level to 31%. This includes the Tesla Model 3, which will ultimately have no choice but to be produced in Germany alongside the Model Y.

What price increase?

It is impossible to simply add 21% to the price of the Tesla Model 3, as the calculation base is not the currently displayed price. The customs value of the vehicle includes the purchase price, transport fees, and insurance until arrival in the European Union (EU). This value is used as the basis for calculating customs duties. Subsequently, VAT (20% in France), profit margin, and Tesla employee salaries will be added to the customer’s invoice.

In the case of Chinese cars, the European Union aims to raise their price by approximately 4,000 to 5,000 euros to reduce the production cost difference and the systematic subsidies from the Chinese government. Thus, one can reasonably expect that the Tesla Model 3 will again settle around 45,000 euros starting July 4, 2024.

If you want a model, don’t waste another minute… otherwise, you will end up losing money.

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