Tesla applies for tariff exclusion.

According to Reuters, Tesla has applied for a tariff exemption for the Chinese made computer brain found in the Model 3.

While not mentioned in the Reuters article, the computer component is currently included under List 2 of the Section 301 duties that came into effect in August of last year.

All goods under List 2 have a duty of 25%.

Tesla’s filing did not specify the Chinese manufacturer and included language mentioning China as the only source of this product that could meet the required specifications and volume.

It will be interesting to see whether this exclusion request is approved as very few of the tens of thousands have been approved. I’ll definitely updated this if and when it is approved.

The time to apply for a tariff exclusion under List 2 has passed and there are currently no instructions for a tariff exclusion request for goods covered under List 3.

Feel free to contact me if you have any questions how these 301 tariffs will impact you and your interests. My cell is 832.896.6288 or email me at dhsu@givensjohnston.com.

TESLA drops China car prices due to tariffs.

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As reported by Reuters in late November, Tesla dropped the price of the Model X and Model S cars by 12 – 26 percent to help make the cars more affordable to customers in China. Back in June of this year, Tesla was one of the first carmakers to raise their prices in response to Tariffs.  The price increase came after a price decrease in May when Tesla lowered prices in China after Beijing said they would cut import tariffs for all auto imports.

The article also indicates Tesla is looking to speed up the construction of their Gigafactory in Shanghai. By producing cars in Shanghai, Tesla shields itself from any future import tariffs.

A few days ago, I wrote a blog post that China is also suspending the increase in tariffs on US cars, not sure if Tesla has raised the prices of their cars following the most recent December announcement.

Tesla raises car prices in China amid potential US/China trade war.

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Reuters is reporting the price of Model S and Model X Tesla vehicles have increased by over $20,000 in China. Reuters cites the website Electrek’s report on Monday.

China already raised tariffs on U.S. car imports in response to President Trump’s move on imposing tariffs on $34 billion worth of Chinese goods.

The raise in prices in China come after a decrease in prices as recently as this past May – when Model X vehicles were discounted $14,000. Electrek reports that 17% of Tesla’s 2017 revenue was from China sales and that Tesla estimates shipping 15,000 cars a year to China.