Jul 10, 2018

Tesla hikes China prices after retaliatory tariffs

A Tesla charging station in Tianjin, China. Photo: VCG via Getty Images

Tesla is upping the price of its cars in China after Beijing hit American auto imports in its retaliatory tariffs on $34 billion worth of U.S. goods.

The big picture: Tesla is the latest company to take a hit in President Trump's trade war, which economists say could hurt American farmers and other automakers around the world.

The details:

  • The price of Tesla's cheapest car in China, the Model S, is going up 20% — or $20,000 a piece — to $128,500. The price of the more expensive Model X is going up by $40,000 per unit to $240,000, reports CNNMoney.
  • Tesla just lowered prices in China earlier this summer after Beijing cut foreign auto tariffs from 25% to 15%, but now prices are going up again.
  • While some firms, like Ford, said it has no plans raise prices on consumers and will absorb the entire impact of tariffs, Tesla said it was unable to do so.

What to watch: Trump is threatening to escalate the global auto war by imposing tariffs on the U.S.'s foreign auto imports using the national security justification (Section 232). Leading car manufacturers like GM, Honda, Toyota, and BMW have warned against the impact of such a move, per Business Insider.

Go deeper

Situational awareness

Photo: Drew Angerer/Getty Images

Catch up on today's biggest news:

  1. Scoop: New White House personnel chief tells Cabinet liaisons to target Never Trumpers
  2. Trump misrepresents 2020 Russia briefing as Democratic "misinformation"
  3. Bernie Sanders takes aim at Bloomberg: "Trump will chew him up and spit him out"
  4. Nearly half of Republicans support pardoning Roger Stone
  5. Scoop: Lyft acquires cartop advertising startup Halo Cars

Sanders takes aim at Bloomberg: "Trump will chew him up and spit him out"

Photo: Mario Tama/Getty Images

Bernie Sanders told CBS "60 Minutes" that he was surprised by Mike Bloomberg's lackluster performance at Wednesday's Democratic debate.

What he's saying: "If that's what happened in a Democratic debate, you know, I think it's quite likely that Trump will chew him up and spit him out."

Scoop: Lyft acquires cartop advertising startup Halo Cars

Photo: Drew Angerer/Getty Images

Lyft has acquired Halo Cars, a small startup that lets ride-hailing drivers earn money via ad displays mounted atop their cars. Lyft confirmed the deal but declined to share any details.

Why it matters: Ride-hailing companies are increasingly eyeing additional ways to generate revenue, and Lyft rival Uber has been quietly testing a partnership with New York-based Cargo that gives it a cut of the advertising revenue, as I previously reported.