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The ongoing trade war between the US and China has continued to escalate lately, and it's already having an impact on many US businesses due to back-and-forth tariffs. Some have been forced to stockpile additional inventory ahead of the holidays to avoid increased import costs in the coming months, whereas others are warning that they'll likely have to pass the costs on to consumers.
Tesla may be planning to go the latter route. As reported by Reuters, the US-based EV maker could increase the prices of its vehicles sold in China by an unknown margin beginning August 30. If China moves forward with planned tariffs on US-made vehicles, Tesla may opt to hike prices a second time toward the end of the holiday season, in December.
These suspected price increases will come amidst already-high tensions and financial turmoil at Tesla HQ. The company has been struggling to return to profitability as of late, while facing issues like the gradual loss of federal tax incentives, production problems, PR nightmares, and much more.
An individual familiar with Tesla's plans told Reuters that the carmaker will "try to ship more cars" to Chinese customers before any upcoming tariffs can take effect. As such, in the unlikely event that any Chinese residents are reading this, now would be a good time to put a deposit down on a Model S, X, or 3.
We'll update this article if Tesla's alleged plans change or take effect.
Middle image credit: The Motley Fool