Tesla has been denied the tariff exemption for the computer and model 3



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Tesla, which is currently seeking to reduce the cost of Model 3 and improve its margin, has officially been denied the exemption from customs duties for the Model 3 computer and its filtering of new tariffs Chinese by the Trump administration.

Last year, President Trump announced a series of new tariffs on Chinese products as part of the intensification of the trade war with China. One of the goals was to convince American companies to keep more of their production in the United States, but it is not so simple.

Although Tesla currently manufactures all of its vehicles in the United States, it still relies on Chinese suppliers for certain specific parts, which may be difficult to manufacture in the United States.

This is apparently the case for a computer inside the Model 3 that Tesla describes as "the brain of the vehicle".

Earlier this year, Tesla had asked the US Trade Representative's office for an exemption from the tariff that could affect the price of his computer, but Reuters now says it was denied:

"The Office of the US Trade Representative rejected both applications in a letter dated May 29, claiming that they both concerned" a product of strategic importance or related to "Made in China 2025" or to other Chinese industrial programs. "

In its application, Tesla argued that it was unrealistic to switch suppliers and that a new 25% tariff was important enough for Tesla to believe that it would have an impact on profitability and would cause "economic harm". " to the society.

Electrek's Take

We're talking about two parts here, so the impact should not be too crazy, but they look expensive and every move counts, as Elon clearly says when he announces Tesla's latest cost-cutting effort.

I doubt that anyone bets much on obtaining the exemption and, therefore, Tesla has, hopefully, considered other solutions throughout the year. .

The good news is that Model 3 vehicles built at Tesla's Gigafactory 3 in Shanghai will not be subject to the same tariffs.


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