Tesla Hikes Model 3 Prices By €1,500 In Europe Due To New Tariffs

In response to new duties imposed by the European Union on electric vehicles made in China, Tesla has raised the price of its best-selling Model 3 car in several European countries. Specifically, the brand's facility in Shanghai, China, produces the Tesla Model 3s sold in Europe.

Prices in countries like Germany, the Netherlands, and Spain will increase by around €1,500 (~$1,600). Even in Sweden, Poland, Greece, Italy, and France, prices will skyrocket. Reuters reports that the starting price for the RWD Model 3 has been raised to €42,490 (~$46,300), the Long Range Model 3 to €51,490 (~$56,200), and the Performance Model 3 to €58,490 (~$63,800).

In anticipation of potential price increases brought on by the July 4 tariffs, Tesla has issued a warning. Tesla's electric vehicles produced in China are subject to an extra 20.8% levy, as the company was one of many that assisted the EU with its inquiry. Despite its size, the additional 20.8% levy is still preferable to the 37.6% tax that some brands will face.

Still, the price increase of €1,500 does not constitute a substantial change. Nevertheless, Tesla has asked for a reassessment of its 20.8% rate, and thus far, there has been no resolution. In May, a rush of price cuts throughout the Tesla range hit fleet purchasers hard, understandable given the high depreciation levels they are facing. Tesla has been giving discounts of €2,000 ($2,200) on the Model 3 and Model Y to woo back some unhappy fleet customers in Europe.