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China, which imposes 15% additional tax on Trump's tax rates, will enter into an agreement with Tesla to facilitate the construction of a new plant
We all know that China and the United States has been through a cold war in recent weeks. This, of course, creates a variety of problems, especially for companies that supply parts from the United States. Tesla, one of these producers, went to raise prices for their vehicles to offset the increase in the export tax.
According to Bloomberg, Tesla, which has the capacity to produce 500,000 cars a year, agrees with the Chinese government to agree on taxation and open new cross-production points to reduce taxes. In the wake of the ongoing trade war between the United States and China, Tesla, which raised prices by more than $ 20,000 on the S and X models, has not prevented sales from exceeding 25%. Of course, these tax rates were not stable because China paid 15% of the taxes on vehicles made in America in retaliation against the United States. According to the company last year, Tesla sold 14,779 vehicles in the country, gaining 20% of its total revenue.
The goal for the new facility was not just the European region, of course. Because Elon Musk was talking about building a new factory in China before. The 25% import tax imposed by Donald Trump on more than 1,300 different products, including steel, iron and touch screen, was the main reason why Tesla was dealing with the China.
If you remember, you did a similar tactic in Harley Davidson. Due to Trump 's tax on the importation of aluminum and steel, the company moved production to a new territory and was less affected by these tax rates. Now, a similar tactic will be implemented in Tesla and products imported into the country via the United States will be produced directly in China and will be less affected by these higher tax rates.
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