Tesla bumps Model 3 prices in Europe as tariffs take effect

Credit: Tesla

Tesla has bumped up the price of its China-made Model 3 sedan in Europe as it is combating tariffs imposed by the European Union.

Tesla will increase prices by €1,500, or $1,622 after the European Union’s tariffs directly impacted any EV manufactured in China and sent to countries in the EU. This includes France, Germany, Italy, Greece, Poland, Spain, and Sweden, among many others.

The prices of the Model 3 configurations are now as follows:

  • RWD Model 3 – €42,490 (from €40,990)
  • Model 3 Long Range – €51,490 (from €49,990)
  • Model 3 Performance – €58,490 (from €56,990)

The automaker warned of potential price increases in countries within the EU in June because of the tariffs.

The European Union is using the tariffs strategy to keep an influx of China-built EVs from flooding the country, as many automakers in the country are able to offer cars at prices that are much cheaper than European companies.

Tesla has a 20.8 percent tariff but requested a recalculation of its rate. Tariffs can get as high as 37.6 percent for some automakers. They are currently temporary but the European Commission is making a decision on whether to keep them and will finalize its choice by November.

In late June, China had hoped to get the EU to walk back its decision on tariffs, which were expected to start on July 4. Ranging from 17.4 percent to 38.1 percent, the two sides said they were willing to potentially abolish the duties altogether.

China hopes to walk EU back from tariffs on imported EVs

Before the date the tariffs went into place, German Chancellor Olaf Scholz said:

“There’s still a bit of time until July 4. But it’s clear, of course, that we will also need serious movement and progress from the Chinese side. It’s important that the EU takes its opportunity until the end of the month, but also that the Chinese government takes its opportunity to bring about an agreement.”

Unfortunately, the two sides could not agree on terms and the EU’s tariffs took effect on July 5.

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Tesla bumps Model 3 prices in Europe as tariffs take effect
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