Tesla Inc (NASDAQ:TSLA) may be planning to raise its prices in China. This will most probably take place starting Friday. It happens that the company will be making a move earlier than expected.
Tesla to raise prices in December again
People that wanted their identities kept anonymous have revealed something intriguing. They say the company may also be considering taking the prices a notch higher in December again. However, this will be in case the Chinese tariffs on the cars made in the U.S become operational. The reason they never wanted their identities disclosed was that the report hadn’t been made public yet.
Several news reporters have been exerting pressure on one Tesla representative to open quip regarding the rumors. The official declined to make any comments.
The trade wars
The existing Sino-U.S. trade friction is about the different standpoints of the countries regarding the distribution of gains from trade. Tesla is one of the affected parties. It has for over quite some time been importing cars from China for its business activities. In several instances, the business guru has been compelled to make price adjustments. That has been as a result of the tariff changes that have been happening now and then.
News from some reliable sources earlier indicated that Tesla had plans underway to lift its prices in China. That would be taking effect starting September. Back then, the yuan had become quite weak when put against the U.S. dollar.
The same sources have indicated that the business giant has been contemplating another price hike in China from December. It was a week ago that the commerce ministry of China revealed its plan to reinstitute tariffs on products. This would be 25% on vehicles in question and another of 5% on the various auto parts it had suspended in December. It is clear that we have lately been witnessing the tit-for-tat trade war between the U.S and China, and it’s difficult to tell when the escalation stops.
Another person who also wants his identity kept anonymous has given out another secret. According to the person, Tesla is hoping to undertake another shipping exercise before December. It wants to ship the cars to China before then to escape tariff hikes.