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>> Buying a Tesla in China just got more expensive and consumers there can blame the US-China trade war. Industry news site electrek reporting Monday that over the weekend, Tesla increased the prices of Model S and Model X by over $22,600 to $37,600, depending on the version. Making it one of the first US carmakers to raise prices in the wake of rising trade tensions.
Reuters' correspondent, Alexandria Sage.>> China is a very big market and potential market for Tesla, we estimate they send over about 15,000 cars per year there which represents about 17% of its total revenue. The cars in China are extremely premium, they're already very expensive. Only the very rich have Teslas in China and now this price hike makes it even more expensive.
>> China had planned to reduce tariffs on imported cars to 15% from 25% starting July 1st. But with escalating trade tensions with the US has instead raised levys on imported cars from the US to 40% forcing companies to either raise prices or manufacture locally.>> Tesla has spoken for a while about its plans to build a factory in China.
Now having their own factory would obviously mean they do not have to pay import taxes. It would also be an easier way, more efficient way to supply the massive Chinese market, the number one automotive market in the world. Tesla says an announcement on its China plants is imminent.
>> Last month, Tesla said it was in exploratory talks with the Shanghai Municipal Government, but not everyone is passing on tariffs to the Chinese consumers. Ford said last week, it would not hike prices on it's cars in China for now, including those on higher margin luxury Lincoln models.