Trade War Sees Tesla Prices Increase By $20,000 In China

Trade War Sees Tesla Prices Increase By $20,000 In China

You may or may not be aware, but relations between China and the US have become a little prickly again. In terms of promoting American made goods, Donald Trump placed a 25% tariff on imported goods to the US. Things, however, really kicked off last Friday when China decided to retaliate by imposing tariffs of their own on US goods exported to China.

One of the major industries affected by this, or at least most notably at the moment, is cars. In a report via CNET, the new regulations in place mean that literally, overnight Tesla cars sold in China had to increase in price by $20,000.

China Hits Back Harder!

In response to the US increase, China increased the tariff on imported electric cars from 15% to 40%. As such, with Tesla producing solely electric cars, they are one of the companies to have been hit the hardest with this news.

Elon Musk is clearly not happy with the current tensions between the two countries. Largely because his business is suffering quite significantly because of it. As such, it is beleived that he will be meeting officials in Beijing to find it there can be some accommodation to the price increase in his cars.

Tesla Just Can’t Get A Break

This is yet another bad news story for the electric car manufacturer. It is no lie to suggest that nearly every news piece that comes out regarding the company is often bad. Even when the company finally hit production targets last month, it came amid rumours that quality control had been seriously compromised.

Such a stark increase though will hit Tesla hard. Particularly in China where there is an ever growing middle-upper class who want access to more prestige vehicles.

What do you think? – Let us know in the comments!