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Tesla stock jumps when China agrees to lower tariffs on American cars, says Trump

Tesla had a hard time in China in recent months because of the customs imposed by American cars in the…

Tesla had a hard time in China in recent months because of the customs imposed by American cars in the escalating trade war with Trump’s administration.

It now appears that they achieved a security guard as Trump claims that China agreed to lower tariffs on US cars.

Earlier this year, Tesla, CEO of Elon Musk, went directly to Donald Trump to deal with questions about car trade between the US and China.

First, it actually seemed like the president included car products in the discussion. [19659002] In May, Tesla lowered its price by 40,000 yuan to 90,000 yuan (~ $ 6,000 to ~ $ 14,000 USD) depending on model in China.

The car manufacturer made it possible to prepare a planned reduction of 25% import duties that Tesla vehicles are subject to China up to 1

5%.

But it was back when the trade war began to escalate and in July, Tesla had to raise the price of Model S and Model X with over $ 20,000 in China due to new

The company was subject to up to 40% of import duties for the vehicles delivered in the country from California.

Last month, Tesla once again reduced its cars in China by 12 to 26%, but the automaker said it absorbed the difference this time.

But it seems they may not have to take up the difference for too long according to Trump:

It is unclear what he means “shrinking and removing”, but it seems that the 40% tariffs in any case decrease.

The market thinks it and the shares of several US automakers have jumped in the futures trading after Trumps tweet.

Tesla warehouse (TSLA) increased most because the company has no local manufacturing yet and tariffs affect

The higher taxes forced Tesla to “accelerate” the construction of its forthcoming Shanghai plant, quoting “disadvantage of costs.”

When Tesla first announced the plant, it said it expects construction to start in the near future “and it takes” about two years “until they start producing vehicles and” then another two to three years before the factory is fully lit. to produce about 500,000 vehicles a year for Chinese customers. “

A few weeks later, Tesla said that it would get” some parts of Model 3 production “to China as soon as next year.

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