Tesla will raise prices in China again

The American company says that the price increase will correspond to the yuan/dollar exchange rate, but prices

may skyrocket again due to new tariffs being introduced as part of the trade war between China and the United States.

Why did it happen

Last week China announced the introduction of newtariffs on US imported goods worth a total of $75 billion. Moreover, there are plans to reintroduce a tax on American cars, which was suspended in December. The new regulation will also impose an additional 10% duty on certain models and brands of cars, as well as auto parts with a 10% duty. If the act comes into force, the price of American auto products (including the cars themselves) will jump by 50%.

What to do Tesla

Tesla had to regulate priceson their own due to changes in taxation, but they see the only correct solution to be the construction of an assembly plant in Shanghai, which has already begun. According to the company's plans, the workshop should produce 500,000 Tesla cars per year. However, production is planned to begin only closer to 2020.