Tesla worried by China tariffs even as deliveries surge
Tesla said the combination of tariffs and transport costs was hurting Tesla sales in the world’s biggest electric car market
Tesla announced record quarterly car production on Tuesday but warned of major problems with selling cars in China due to new tariffs that would force it to accelerate investment in its factory in Shanghai.
In July, China raised tariffs on imports of US autos to 40 per cent amid a worsening trade war with the United States.
Tesla said the combination of tariffs and transport costs was hurting Tesla sales in the world’s biggest electric car market.
“Taking ocean transport costs and import tariffs into account, Tesla is now operating at a 55 per cent to 60 per cent cost disadvantage compared to the exact same car locally produced in China,” the company said.
The California-based electric carmaker, emerging from several months of turmoil stemming from its tweeting Chief Executive Elon Musk, said it produced 80,142 vehicles in the third quarter, a 50 per cent jump from its prior quarter as the company strives to master volume production.