BEIJING (Reuters) – U.S. electric car maker Tesla, Inc., is considering lifting its prices in China as of September to the middle of yuan-related uncertainty, two people familiar with the matter said.
FILE PHOTO: People visit a Tesla booth during the media day of the Shanghai auto show in Shanghai, China-April 16, 2019 at the latest. REUTERS/Aly Song
The people refused to enter the name of the plan was not disclosed to the public. They do not provide, in detail, at the price of changing it.
China has allowed the yuan to weaken, along with the 7-per-dollar level on Monday for the first time in more than a decade, and the U.S. government to label China a currency manipulator, it is raising the stakes in a trade dispute between the two countries.
China is firmly opposed to the currency manipulator label to say that it doesn’t have to be used, and the use of the yuan in order to cope with the US trade friction.
The sharp drop in the yuan will come days after the US President, when He shocked financial markets by vowing to impose 10% tariffs on the remaining $300 billion of Chinese imports on high prices. 1, an abrupt break from a brief ceasefire in the war that has disrupted global supply chains and slowed growth.
Tesla currently has the input of all of the cars it sells in China, but it is in the process of building a manufacturing facility in Shanghai, which will manufacture, Model, 3 cars at the initial stage and help to minimise the impact on the working class and the tax rates.
If enacted, this would be the first case of a proposed adjustment by the importer since the yuan fell this week, and it points to the growing pressures that importers are facing.
Tesla broke ground on the Shanghai and the factory in January, and its Chief Executive Officer Elon Musk has said the company is committed to the finish line in the first instance, who will this year start the production of the Model 3 in the direction of the end of the year.
The provision of all of the models in the second quarter of this year increased by 51% from the first quarter to 95,200 cars, including 77,550 Model 3s, 17,650 Model S and X.
Last month, a Tesla in the world, declined the range of the variations of the Model X and Model S, from its product line-up, and increased prices in our product range.
In China, the world’s largest market for electric cars at some of the trade tensions between the US and China has caused the Rate to be adjusted more than once in the last year or so, because of the changes in tariff rates.
Tesla did not immediately respond to a Reuters request for comment.
Reporting Yilei Sun, and, by Brenda Goh; Editing by Himani sarkar and Christian Schmollinger