Home / Business / Tesla was denied duty-free computer and Model 3 screen

Tesla was denied duty-free computer and Model 3 screen

Tesla, which is currently trying to lower Model 3 costs and improve its profit margin, has been formally denied by the Trump Administration for the computer and screen-free screen of Model 3 over the new Chinese tariffs.

Last year, President Trump announced a series of new tariffs on Chinese goods in an intensified trade war with China. One of the goals was to convince American companies to keep more of their production in the US, but it's not that easy.

Although Tesla is currently manufacturing all of its vehicles in the US, it still relies on Chinese parts suppliers. This seems to be the case for a Model 3 computer, which Tesla calls the "brain of the vehicle."

Earlier this year, Tesla asked the United States trade representation for a waiver of the tariff, which would affect the price of their computer, but now Reuters reports that they were rejected:

"The US Trade Representative declined both applications in the letter of May 29, saying that they both concern "a product of strategic importance or related to 'Made in China 2025" or other Chinese industrial programs. "

In his request, Tesla argued that it is not realistic to switch suppliers, and that a new tariff of 25 percent applies f is so significant that Tesla believes that it affects profitability and harms the company" economic damage " would inflict.

Electrek & # 39; s Take

We're talking about two parts here so the effects are not too crazy, but they look expensive and every bit counts, Elon pointed out as he announced Tesla's latest cost-cutting efforts.

I doubt that anyone has bet heavily on the liberation, and so, hopefully, Tesla has been looking for other alternatives year round.

The good news is that models 3 built in Tesla's Gigafactory 3 in Shanghai will not suffer from the same tariffs.

Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

Source link