Trade War Between China And The US Abets The Rise Of Tesla Prices Locally

Mondays are usually not a good day for people going to work. For those involved with Tesla or monitoring the company's stocks, though, it was a good day. It wasn't as good, however, for people who are currently reeling from the company's latest actions in the Chinese market.

Pushing The Panic Button

Tesla's reaction to the US' trade tariffs was to raise the prices of its Chinese imports. To date, Tesla's Models S and X have risen up to 150,000 and 250,000 yuan, according to The Verge. This was inevitable; while the US raised its tariffs, China, in turn, has lowered its own, specifically for cars and auto imports. But this is just one of the many things that this 'trade war' has started.

In a counter-reaction, automakers selling in the Chinese market have tried to make things easier. Most of them exported lots of models even before the tariff takes effect. Other things they've tried is to try and put a hold on implementing higher prices, perhaps, to entice people to buy first.

The Chinese Onslaught

It's understandable why Tesla and other automakers would seek to lower their prices. The Street said that the Model S and the Model X are some of the best-selling cars on the market. They are also-at their current prices-selling $50,000 higher than the models sold in the US. Even the Chinese import tax cuts can't stop their skyrocketing prices. It also remains to be seen whether Tesla's 17% revenue from the Chinese markets will suffer because of Trump's trade legislation.

Countermeasures

There certainly are many things Tesla could do to ease their problems.

For one, they are eyeing a GIgafactory as well as an assembly plant built on Chinese soil. These are aimed at bringing the models into the territory-and, perhaps, to make it cheaper to sell and to export in the local region. Ford Motor Co. and General Motors have already done it, so it seems like a feasible avenue.

These, among other ideas, are currently being hinted at by founder and CEO Elon Musk, who has actually told Trump about the unfair practices of doing business in China. More developments are being monitored as Tesla gears up for their drive in China and the rest of the Asian region.