Tesla to Raise Model 3 Prices in Europe Following New Tariffs on Chinese-Made EVs

Tesla has officially confirmed that, following the implementation of new tariffs on electric vehicles manufactured in China, it will be forced to increase the price of the Model 3 in the European market. As a result, the American company urges interested customers to place their orders in June.

“We anticipate the need to raise Model 3 prices starting from July 1, 2024. This is due to the additional import tariffs likely to be imposed on electric vehicles manufactured in China and sold in the European Union.” Tesla has not yet specified the exact amount by which Model 3 prices will increase.

Although the punitive tariffs approved by the European Commission were primarily aimed at Chinese groups like BYD, they will also affect Western manufacturers producing electric vehicles in the Asian country. Among the affected brands are BMW, CUPRA, Dacia, MINI, Smart, and Volvo.

Since Tesla has been one of the companies cooperating with the anti-subsidy investigation conducted by the Commission in recent months, it will be subjected to a standard tariff of 21%. However, the company could receive an individual tax starting in November, when the final tariffs come into effect (the current ones are provisional).

Will Tesla Manufacture the Model 3 in Germany?

For now, only three companies have received individual tariffs. The biggest blow has undoubtedly been dealt to the SAIC group, the parent company of the popular Anglo-Chinese brand MG, which will face an additional rate of 38.1%. BYD and Geely, with 17.4% and 20% respectively, have fared much better.

In some cases, there are already plans to relocate production to avoid the new tariffs. The BMW iX3 and Volvo EX30 will start being produced in Hungary and Belgium from next year, while the MINI Cooper and Aceman will begin assembly in the UK in 2026.

It is unclear whether Tesla plans to follow a similar strategy and start manufacturing the Model 3 at Giga Berlin. It was previously announced that, if necessary, the German factory could handle the local production of the electric sedan, as it is largely the same vehicle as the Model Y, which is already assembled at the site.