$Tesla (TSLA.US)$On Thursday, it was announced that it is expected to raise the sales price of its Model 3 autos in European countries from July 1, 2024, to respond to the EU's imposition of additional tariffs on Chinese electric autos. The company stated on its European website: "We expect that from July 1, 2024, we will be required to increase the pricing of the Model 3 autos, due to additional import tariffs that may be levied on electric autos produced in China and sold in the EU." However, Tesla did not disclose how much it plans to raise the Model 3's price.

The company said on its European website: "We expect that from July 1, 2024, we will be required to increase the pricing of the Model 3 autos, due to additional import tariffs that may be levied on electric autos produced in China and sold in the EU." However, Tesla did not disclose how much it plans to raise the Model 3's price.

The European Commission announced the previous day that the EU will impose an additional tariff of up to 38.1% on electric autos imported from China starting next month. If a solution cannot be reached with China, the tariff will be imposed around July 4 and may be converted into a so-called final tariff measure four months later.

So far, auto manufacturers such as BYD, Geely Auto, and SAIC Motor Corporation have all received specific tariff rates, but Tesla has not received exact information. The EU side has stated that importation of Tesla autos from China may be subject to a separate tariff.

Tesla has one of its largest super-factories in Shanghai. According to media reports, in 2023, Tesla's Shanghai factory delivered 947,000 autos, of which 600,000 were supplied to the Chinese market, and the rest were exported to overseas markets.

EU Trade Commissioner Valdis Dombrovskis said on Wednesday that Tesla has requested a reduction in tariffs, and the European Commission is currently conducting a careful evaluation of the matter.

"We are also looking closely at the subsidies that Tesla receives in China, which could result in different levels of anti-subsidy tariffs," he added.

Bernstein analysts believe that Tesla may receive lower tariff rates than other auto manufacturers after the EU imposes additional tariffs on Chinese electric autos.

Chinese Ministry of Commerce spokesperson, Hua Chunying, responded on Thursday, "I would like to emphasize that the determination in the EU ruling lacks factual and legal basis, which not only harms the legitimate rights and interests of China's electric auto industry, disrupts the mutually beneficial cooperation between China and Europe on new energy autos, but also distorts the global auto industry chain and supply chain. The EU's approach may constitute naked trade protectionism and is suspected of violating WTO rules. China reserves the right to file a lawsuit to the WTO and will take all necessary measures to firmly defend the legitimate rights and interests of Chinese enterprises."

At the same time, Hua urged the EU to immediately correct its erroneous practices, implement the important consensus reached in the recent tripartite meeting between China, France, and the EU, adhere to the correct way for China and the EU to get along, properly handle economic and trade frictions, expand cooperation, and achieve win-win results through benign competition.

Editor/new