Tesla Inc (NASDAQ:TSLA) has increased the price of its vehicles in China as trade war tariffs take their toll on the electric-car maker.
The prices of the Model S and Model X shot up significantly, increasing by about US$22,600 to US$37,600, per an Electrek report.
READ: Tesla may be closer to a Shanghai factory in light of Chinese policy change
The company was expected to open a factory in Shanghai’s Free-Trade Zone so that it could manufacture cars locally and be exempt from the country’s import tax, but the trade war has caught up with the electric-vehicle manufacturer.
This comes as China imposes US$34bn worth of tariffs on US goods in retaliation for the Trump administration's recent tariffs on Chinese goods.
Sales of Tesla vehicles in China have doubled to US$2bn in 2017 from US$1bn in the previous year.
The new tax is expected to negatively affect sales until the company can manufacture locally.
Shares of the California-based company were up around 1% to US$312.12 in Monday morning trading.
Contact Lenore Fedow at lenore@proactiveinvestors.com
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