Tesla Warns Of Model 3 Price Hike In EU Due To Tariffs, Recommends Customers To Take Delivery In June To 'Secure Current Price'

EV giant Tesla Inc TSLA expects to increase the prices on its cheapest offering – the Model 3 sedan – starting July 1, owing to an increase in import tariffs levied on cars made in China and sold in the European Union.

What Happened: “Model 3 price is likely to increase from 1 July 2024 due to expected import duties,” a message on Tesla’s website for Ireland reads, while also urging customers to secure their vehicle deliveries in June to avail the current prices. The message, however, does not specify how much the prices will be increased.

Similar messages are also displayed on the company’s websites for Denmark, Belgium, France, and Germany in their respective languages.

The Model 3 currently starts at €40,990 (approx. $44,227) in Germany for the rear-wheel drive version of the vehicle, with the more premium performance all-wheel version starting at €56,990 (approx. $61,491.)

Why It Matters: Tesla’s warning comes on the heels of the European Commission saying that it will impose extra duties of between 17% and 38% on EVs imported from China on top of the existing 10% tariffs starting in July.

The new tariffs in the EU are still significantly lower than the 100% duty levied by the U.S. on EV imports from China.

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