Tesla Raises Prices In China Ahead Of Tariff Increase

Tesla Inc. TSLA has raised its vehicle prices in China ahead of new Chinese tariffs on imported U.S. cars, The Wall Street Journal reported Friday.

The electric vehicle manufacturer increased the price for an imported Model 3 to from $49,750 to $50,870, the newspaper said. 

Tesla shares were trading higher after it was reported that China will exempt 16 Tesla variants from an auto purchase tax.

The Chinese government has said it plans to reinstate 25% tariffs on imported U.S. vehicles starting in December 2019.

Tesla imports all of the vehicles it sells in China, and investors can expect the company to push hard to get as many vehicles shipped there as possible prior to December.

This latest move is increasing pressure on the California electric-vehicle maker to fast-track production at its new Shanghai plant, WSJ said. 

Tesla shares were trading up more than 3% at $228.51 at the time of publication Friday. The stock has a 52-week high of $379.49 and a 52-week low of $176.99.

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Photo courtesy of Tesla.