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Tesla (TSLA) to Hike Model 3 Prices in Europe on Higher Tariff
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Tesla (TSLA - Free Report) is set to raise prices for its Model 3 in Europe starting Jul 1, 2024, following indications from the European Union (EU) of potential higher tariffs on imported electric cars from China.
Notices regarding the price hike have been posted on Tesla’s websites in various European countries, including Germany where the company operates a factory and Hungary. The U.S. automaker has not disclosed the exact increase for the Model 3, which starts at $44,000 in Germany.
The European Commission, the EU’s executive body, recently announced plans to increase tariffs on cars imported from China to the 27-nation bloc. This decision stems from an EU investigation that found unfair subsidization in China's battery-electric vehicles sector. If unresolved, provisional duties will take effect on Jul 4, 2024, with definitive measures expected four months later.
Chinese electric vehicles have faced tariffs of up to 38.1%. Tesla, which exports Model 3 cars from Shanghai to Europe, is among the companies that cooperated with the EU investigation, resulting in a lower tariff of 21% initially. TSLA may receive an individually calculated duty rate when definitive tariffs are imposed in November.
Shanghai hosts one of Tesla’s largest Gigafactories. In 2023, the company delivered 947,000 vehicles from this factory, with a significant portion exported outside China.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved 12 cents and 10 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 2 cents in the past 30 days. The EPS estimates for 2025 have moved up 15 cents in the past seven days.
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Tesla (TSLA) to Hike Model 3 Prices in Europe on Higher Tariff
Tesla (TSLA - Free Report) is set to raise prices for its Model 3 in Europe starting Jul 1, 2024, following indications from the European Union (EU) of potential higher tariffs on imported electric cars from China.
Notices regarding the price hike have been posted on Tesla’s websites in various European countries, including Germany where the company operates a factory and Hungary. The U.S. automaker has not disclosed the exact increase for the Model 3, which starts at $44,000 in Germany.
The European Commission, the EU’s executive body, recently announced plans to increase tariffs on cars imported from China to the 27-nation bloc. This decision stems from an EU investigation that found unfair subsidization in China's battery-electric vehicles sector. If unresolved, provisional duties will take effect on Jul 4, 2024, with definitive measures expected four months later.
Chinese electric vehicles have faced tariffs of up to 38.1%. Tesla, which exports Model 3 cars from Shanghai to Europe, is among the companies that cooperated with the EU investigation, resulting in a lower tariff of 21% initially. TSLA may receive an individually calculated duty rate when definitive tariffs are imposed in November.
Shanghai hosts one of Tesla’s largest Gigafactories. In 2023, the company delivered 947,000 vehicles from this factory, with a significant portion exported outside China.
Zacks Rank & Key Picks
TSLA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Blue Bird Corporation (BLBD - Free Report) , Oshkosh Corporation (OSK - Free Report) and American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved 12 cents and 10 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 2 cents in the past 30 days. The EPS estimates for 2025 have moved up 15 cents in the past seven days.