The price of the Tesla Model 3 is expected to drop!

Produced in China, the Tesla Model 3 has been hit with punitive customs fees by the European Commission. However, the sanction has been softened.

Since Friday, July 5, variable tariffs of up to nearly 50% have been applied to electric vehicle imports from China. The threat of a costly trade war with Beijing has been looming ever since, forcing Brussels to soften its stance and its sanctions slightly.

First of all, it’s important to note that these fees are in addition to the 10% already applied previously on all electric vehicles coming from China. Thermal and hybrid vehicles are currently exempt. The naughty little outcasts that did not cooperate in the European investigation into Chinese subsidies opened in 2023 see the surcharge reduced from 37.6% to 36.3%. This is particularly the case for brands of the state-owned group SAIC and its flagship brand in Europe, MG. The Sino-British brand has decided not to raise its prices, relying on its stocks to weather the storm while waiting for it to pass. Unfortunately, we should expect a future surge in prices.

Tesla wins the case

But the big winner is Tesla! The American manufacturer is, of course, by definition not a Chinese company, but the Model 3s sold in Europe are produced in the Shanghai Gigafactory and thus travel halfway around the globe to arrive on the old continent. A disastrous carbon footprint that led the European Commission to impose a flat sanction of 21%. No surprise, after a brief moment of hesitation, Tesla had to increase its prices by 1,500 euros. Tesla did not give up and after advocating its case, likely leveraging its presence in Europe with the Berlin Gigafactory, the rate was brought down to 9%.

With a quick calculation, one can estimate that Tesla has just gained nearly 800 euros per model. All that remains now is to pass this reduction onto the customer bill. The prices on the Tesla France website are now 41,490 euros for the Propulsion, 50,490 euros for the All-Wheel Drive Long Range, and 57,490 euros for the Performance. Attention, we’re watching…

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