Musk Gets as Many Model 3 Sedans to China as He Can Before the Price Increase

There are 3 ships that have the approximate length of two football fields that are to arrive in China until the end of the month. Each one of them has a special cargo from Elon Musk.

The company is loading many Model 3 sedans – as many as they can into these ships that are meant to get to People’s Republic until the 1st of March, when the entire war between Trump and Xi Jinping is supposed to end. Musk is afraid of the fact that the two countries could increase expenses, which means that Musk’s cars will be more expensive in China.

Musk is not the only one in this situation, there are other companies, too, that might have to deal with the same situation if the war between those two does not end. Musk is the most careful out of this entire deal. Other big names simply go around the prices and boost the production in the factories from China. However, Tesla will not make any new vehicles there until at least the end of 2019.

So what was the plan?

Musk’s plan was to bring to China as many cars as he can, in case the price increases. Cars brought from outside the country are not eligible for local tax credits. He has to pay a lot of money to make this happen – transport. And the demand for this model is very high. The only problem might be the price – which could be too expensive for those people.

The US announced that they are delaying the planned price increase for half of the goods they get from China – which is worth $200 billion.

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Meagan Kozlovs

About the Author: Meagan Kozlovs

Meagan Kozlovs is a reporter for Debate Report. She’s worked and interned at Global News Toronto  and CHECX. Megan is based in Toronto and covers issues affecting her city. In addition to her severe milk shake addiction, she’s a Netflix enthusiast, a red wine drinker, and a voracious reader.

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