Tesla to Raise Prices in China?
Tesla Inc. may raise prices of electric cars it sells in China by an unspecified amount, beginning in September, sources tell Reuters.
They say the increase would be an effort to defend the dollar value of the company’s cars—all of which currently are supplied from the U.S.—after the yuan abruptly weakened earlier this week.
The U.S. government claims the yuan’s drop was currency manipulation in response to President Donald Trump’s vow to impose 10% tariffs on $300 billion worth of Chinese goods, also beginning in September. China denies any manipulation.
Meanwhile, Tesla is rushing to circumvent such issues by opening an assembly plant in Shanghai by the end of this year. The factory initially will build the Tesla Model 3 electric sedan.
Once the playground of exotic car makers, the definition of a niche vehicle has expanded to include image vehicles for mainstream OEMs, and specialist models produced on high-volume platforms.
It’s the fifth generation of a vehicle that has been increasing in sales year after year since its introduction in 1997.
Delegates to the United Auto Workers union’s annual convention in Detroit have overwhelmingly approved a 31% raise for their salaried international leaders.