Trade Wars Making Things Tough For Tesla

Just when it looked like China was going to be Tesla’s boon, the US’s trade war changed all that. Over the weekend, Tesla raised the price of the Model S and Model X by around 20 percent to compensate, according to stock-investing publication Seeking Alpha. In terms of hard figures, that means it’ll cost around $22,000 and $37,000 more to buy one of Elon Musk’s EVs in the region. This setback comes mere months after China eased restrictions on foreign automakers. As Electrek reports, Tesla exports loads of vehicles to China, despite the pre-existing 25 percent import tax for local buyers. Currently, the tariff is 40 percent; the only way for the company to sidestep these taxes is to manufacture in China.

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