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Home»Electric Vehicles»Tesla Raises Model 3 Prices in Europe Due to New Tariffs
Electric Vehicles

Tesla Raises Model 3 Prices in Europe Due to New Tariffs

William D. KouchBy William D. KouchJuly 10, 2024Updated:April 21, 2025No Comments3 Mins Read
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Tesla Raises Model 3 Prices In Europe Due To New
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Tesla Hikes Model 3 Prices in Europe Following EU Tariffs

Impact of New EU Tariffs on China-Made EVs

Tesla has recently increased the prices of its China-manufactured Model 3 sedans in Europe owing to tariffs imposed by the European Union. The company has bumped the price by €1,500, approximately $1,622, in response to the EU’s tariffs affecting electric vehicles (EVs) produced in China and exported to various EU nations, including France, Germany, Italy, Greece, Poland, Spain, and Sweden, among others.

Updated Model 3 Pricing

The new pricing structure for the Tesla Model 3 configurations in Europe is as follows:

  • RWD Model 3: €42,490 (from €40,990)
  • Model 3 Long Range: €51,490 (from €49,990)
  • Model 3 Performance: €58,490 (from €56,990)

The automaker had previously cautioned about potential price increases within EU countries back in June due to the impending tariffs.

EU’s Strategy to Curb China-made EVs

The European Union has adopted the tariff strategy to regulate the influx of China-built EVs, which tend to be cheaper than those produced by European companies. Tesla currently faces a 20.8 percent tariff but has requested a reevaluation of this rate. Tariffs could reach as high as 37.6 percent for some automakers. While these tariffs are currently temporary, the European Commission is set to make a final decision on whether to retain them by November.

Negotiations Between EU and China

In late June, there was hope that China and the EU might reach an agreement to revoke these tariffs, which were scheduled to be implemented on July 4. The tariffs range from 17.4 percent to 38.1 percent. Both parties expressed a willingness to potentially eliminate these duties altogether.

German Chancellor Olaf Scholz had said prior to the tariff deadline:

"There’s still a bit of time until July 4. But it’s clear, of course, that we will also need serious movement and progress from the Chinese side. It’s important that the EU takes its opportunity until the end of the month, but also that the Chinese government takes its opportunity to bring about an agreement."

However, despite these discussions, no agreement was reached, and the EU’s tariffs came into effect on July 5.

Conclusion

The tariff imposition by the European Union is a significant move to level the playing field against cheaper China-made EVs. Tesla’s price adjustment is a direct response to these financial pressures. As stakeholders await the European Commission’s final decision on the permanence of these tariffs, automakers and consumers will need to adjust to the immediate changes in the market dynamics. For the latest insights and updates on the automotive industry, visit automotive.fyi.


Stay informed on this evolving topic and other automotive news by following our updates at automotive.fyi. If you have any tips or insights, feel free to contact us through our news tip email.

Due Europe Model Prices Raises Tariffs Tesla
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William D. Kouch

William Kouch, EV Senior Editor at automotive.fyi, graduated with a degree in Communications from Illinois Wesleyan University. With an extensive background in electric vehicles and a focus on Tesla and other leading brands, he brings deep industry insights and a passion for sustainable transportation. Follow William for expert analysis and updates on the future of electric mobility.

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