Tesla (NASDAQ:TSLA) stated that it is likely to raise the prices of its Model 3 vehicles in Europe from July 1 due to potential higher EU tariffs on electric cars imported from China. Tesla did not disclose how much it plans to raise the price of its Model 3 vehicles in Europe.
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Europe’s Tariffs on China-made EVs
The European Commission announced on Wednesday that it will impose tariffs of up to 38% on Chinese EV imports. The Commission stated that the tariffs will likely be imposed starting from July 4 if the EU fails to reach a solution with Chinese authorities.
The EU will impose tariffs of up to 38.1% on Chinese EVs. In the case of Tesla (TSLA), the EU has not specified the exact duty it will have to pay for its cars manufactured in China and imported into the EU. Tesla’s Shanghai Gigafactory delivered 947,000 vehicles last year, with 600,000 sold in China and the rest exported, according to Chinese state media.
Interestingly, the EU already imposes tariffs of 10% on Chinese EVs, and these new tariffs will be in addition to the existing import duties.
Is Tesla a Buy, Sell, or Hold?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on nine Buys, 14 Holds, and nine Sells. Over the past year, TSLA has declined by more than 30%, and the average TSLA price target of $172.92 implies a downside potential of 2.5% from current levels.
