Tesla Increases Prices In China As Trade War With U.S. Rages On

Tesla will reportedly increase prices of its vehicles in China, according to a recent Reuters report, as the trade war between it and the United States heats up.

Sources close to the matter claim that Tesla has been prompted to increase prices in China after the yuan weakened significantly against the U.S. dollar. There is no word on how much prices will rise, by but it has been revealed that the electric car manufacturer is also considering yet another hike in December.

Also Read: China Slaps US-Made Cars With 25% Tariff – BMW, Ford, Mercedes And Tesla Set To Feel The Pinch

Tesla has been forced to tweak pricing for the vehicles it sells in China on a number of occasions in the past 12 months or so. In July 2018, for instance, prices of select models jumped by almost 20 per cent; the Model X was previously available from $117,100, but soared to $140,100.

Prices continued to fluctuate and, in March this year, fell significantly. For example, the Model X 100D suddenly dropped down to $115,000, while prices of various Model 3 and Model S variants were also lowered.

Last week, China announced a series of new levies on $75 billion of imported goods from the United States. Included in the announcement was a plan to revive a 25 per cent tariff on U.S. cars, which had been suspended last December. There are also plans to add an extra 10 per cent levy on certain cars and five per cent on auto parts.