Electric carmaker Tesla will reportedly increase prices in China this week in anticipation of rising tariffs — but one automobile expert says the higher costs will not likely last.
That's because the company will localize its production to avoid the impact of additional duties, brought on by the escalating trade dispute between the U.S. and China, said Bill Russo, founder and CEO of private equity firm Automobility Limited.
The U.S. and China have been locked in a trade battle for more than a year, with both sides slapping additional tariffs on each other's goods. U.S. automobiles and auto parts will be subjected to a 25% tariff from Dec. 15 this year,"The challenge is: You need to bring the products in and make money. So I think, yes, a step up in price is probably likely," said Russo.
Sourcing and manufacturing within the country will be "essential" for automotive companies because of stiff competition, he said.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Tesla to raise prices in China on August 30, may increase again in December: sourcesU.S. electric vehicle maker Tesla Inc will raise prices in China on Friday, earl...
Consulte Mais informação »
Amazon Also Experienced Tesla Solar Panel FireBoth Amazon and Walmart say they’ve had problems with Tesla solar panels.
Consulte Mais informação »
Tesla is raising prices in China this week because of President Trump's trade war — and may raise them again in DecemberElon Musk's factory in Shanghai isn't even open yet, but the trade spat and a weakened yuan are already wreaking havoc on its expansion plans.
Consulte Mais informação »
What to watch today: Dow to bounce on Trump's China trade optimism after Friday's plungeFollowing comments by President Trump on China trade, U.S. stock futures erase early sharp losses and now indicate a strong Wall Street open.
Consulte Mais informação »
Trump claims China wants a trade deal, an effort to reassure markets, G7 alliesPresident Trump tried Monday to reassure global markets by announcing that China is ready to re-start trade talks -- and insisting that French President Emmanuel Macron's surprise meetings with Iran a day earlier occurred with his blessing.
Consulte Mais informação »