This may dampen the hopes of some fans, but Tesla still has no plans to produce the Model 3 in Europe.
From time to time, the rumor of a production of the Model 3 relocated to Berlin resurfaces among fans of the brand. Many hope that the electric sedan will soon be assembled in Europe, rather than in China, like the Model Y. Nothing corroborates this rumor for the moment. Tesla even confirmed during its Financial results conference of July 23, 2024 that this was not planned.
The Tesla Model 3 is among the electric cars that are expected to face a tariff surcharge, sparking speculation that it could change its production location to avoid the penalty in the European market.
Tesla awaiting final decision on customs duty surcharge
In early July, all car manufacturers producing electric cars in China discovered the provisional rate that they had to provide for each model sold in Europe. The final decision on whether to maintain this customs duty surcharge, as well as the final values, will not be fixed until November.
Tesla is facing tariffs of around 30.8% on its Chinese imports in the coming months, but the company has asked the EU to have a custom rate (like Geely, BYD or MG). Tesla CFO Vaibhav Taneja said on July 23: We are confident that we should get a better rate than they have imposed so far. »
In the meantime, the Tesla Model 3 has already undergone a first price increase of €1,500 on July 9. The amount is identical for all 3 versions, which means that the increase is mostly symbolic for now. If the customs duty surcharge is confirmed, the increase is likely to be more significant, especially for the Performance and Long Range finishes.
A situation that may still evolve
« We continue to import Model 3s to Europe from Shanghai “, the CFO said to silence speculation. Tesla has chosen to engage in full transparency with the European Commission and has opened the doors of its Shanghai gigafactory to investigators.
If Tesla gets a custom rate low enough to not impact the cost of the Model 3 too much, it is unlikely that the company will embark on a relocation of production. This maneuver would not be profitable for the American manufacturer, especially since the Model 3 is no longer enjoying the success of its beginnings. Opening a new production line in Berlin for a second model is not done lightly and not in such a short time frame. The entire supply chain must be reviewed, in addition to setting up and testing the production line.
It will be quite easy to see if things are changing in this direction, however. Just watch for the arrival of new gigapresses at the German factory. The delivery of all production tools rarely goes unnoticed at Tesla.
The CFO did not close any doors, however, also saying: ” We continue to evaluate how best to handle all of this. “It must be understood that if the discussions with the EU do not lead to the result expected by Tesla, nothing is ever excluded. It is still necessary that the demand for the sedan does not crash in the meantime.
The pace of industry is not the same as the pace of the political agenda. The decisions of car manufacturers have far-reaching consequences. This is a topic to discover in our weekly newsletter Watt Else.
Source: www.numerama.com
