Even while the United States and China get in a war of words related to the devaluation of the Chinese currency yuan with Washington officially identifying Beijing as a currency manipulator, US electric vehicles manufacturer Tesla Inc is reportedly contemplating increasing the price of its cars in the Chinese market, claimed reports quoting sources.
The reports did not provide any details of the changes in price as well as disclose the identities of the sources.
The allegation of the US of China being a currency manipulator has been severely refuted by Beijing and has said that its currency has not been used by Chinese authorities and will not be used in the future as a tool to cushion the impact of the its trade war with the US.
The yuan dropped significantly against the US dollar on Monday and went past the so called sacrosanct mar of 7 yuan against the dollar. There were allegations that the fall of the yuan was uniform and not resisted by Beijing. It was just last week the US president Donald Trump announced new tariffs of 10 per cent on Chinese goods imported into the US worth $300 billion. These new tariffs would include goods that had not been included in the previous tariff lists and with this new tariff, set to be implemented from September 1, virtually all of the Chinese exports to the US would come under the Trump tariff regimen. The sudden announcement of the tariffs by Trump also brought to an abrupt end the recently restarted negotiations on a trade deal between the two largest economies of the world. The two countries have been engaged in an acrimonious trade war for over a year now which has rattled global markets and slowed down global trade and economic growth.
All of the cars currently sold by Tesla in the Chinese market are imported by it from its US manufacturing units. The company is however in the process of building up a factory in Shanghai for the domestic manufacturing of its model 3 cars initially which would also help the company to avoid some of the impacts of the trade war and the resultant tariffs imposed on US imports by China.
If the reports turn out to be true, this would indicate the growing pressures that importers are bringing in products into China from the US.
Tesla began construction of its factory in Shanghai in January this year and the company plans to complete the initial phase of construction by the summer this year, company CEO Elon Musk has announced. Musk had further announced that production at the factory would be initiated by the end of the current year.
The second quarter performance of Tesla has been good on the delivery side as the company made record deliveries of 95,200 vehicles which included 77,550 Model 3s, 17,650 Model S and X. Last month, the company trimmed its product portfolio by dropping the standard-range variants of its Model X and Model S globally as well as making some price adjustments.
(Source:www.nasdaq.com)
The reports did not provide any details of the changes in price as well as disclose the identities of the sources.
The allegation of the US of China being a currency manipulator has been severely refuted by Beijing and has said that its currency has not been used by Chinese authorities and will not be used in the future as a tool to cushion the impact of the its trade war with the US.
The yuan dropped significantly against the US dollar on Monday and went past the so called sacrosanct mar of 7 yuan against the dollar. There were allegations that the fall of the yuan was uniform and not resisted by Beijing. It was just last week the US president Donald Trump announced new tariffs of 10 per cent on Chinese goods imported into the US worth $300 billion. These new tariffs would include goods that had not been included in the previous tariff lists and with this new tariff, set to be implemented from September 1, virtually all of the Chinese exports to the US would come under the Trump tariff regimen. The sudden announcement of the tariffs by Trump also brought to an abrupt end the recently restarted negotiations on a trade deal between the two largest economies of the world. The two countries have been engaged in an acrimonious trade war for over a year now which has rattled global markets and slowed down global trade and economic growth.
All of the cars currently sold by Tesla in the Chinese market are imported by it from its US manufacturing units. The company is however in the process of building up a factory in Shanghai for the domestic manufacturing of its model 3 cars initially which would also help the company to avoid some of the impacts of the trade war and the resultant tariffs imposed on US imports by China.
If the reports turn out to be true, this would indicate the growing pressures that importers are bringing in products into China from the US.
Tesla began construction of its factory in Shanghai in January this year and the company plans to complete the initial phase of construction by the summer this year, company CEO Elon Musk has announced. Musk had further announced that production at the factory would be initiated by the end of the current year.
The second quarter performance of Tesla has been good on the delivery side as the company made record deliveries of 95,200 vehicles which included 77,550 Model 3s, 17,650 Model S and X. Last month, the company trimmed its product portfolio by dropping the standard-range variants of its Model X and Model S globally as well as making some price adjustments.
(Source:www.nasdaq.com)
