- General
- January 5, 2019
- 4 minutes read
Tesla Pushes For Tariff Exemption For Critical Chinese Made Model 3 Computer
image : Tesla Tesla has made a request with the Trump Administration for an exemption from new 25% tariffs for…
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| image : Tesla |
Tesla has made a request with the Trump Administration for an exemption from new 25% tariffs for a critical Chinese-made part of the Model 3, a computer which it dubs as the ‘brain’ of the vehicle. “Increased tariffs on this particular part cause economic harm to Tesla, through the increase of costs and impact to profitability,” Tesla said in a previously unreported tariff relief request uncovered by Reuters.
Tesla called the computer the “the brain of the vehicle {Model 3},” adding that “choosing any other supplier would have delayed the (Model 3) program by 18 months with clean room setup, line validation, and staff training.” Reuters reports.
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| image : Tesla |
It’s unclear which specific computer Tesla is referring to with the supplier name for the Chinese-made component also not provided. Moves like this signal increased focus on the Model 3 which the EV maker has began churning out at an average of almost 5,000 units per week. Profit margins for this vehicle is key to Tesla which just recently opened up configuration for buyers in China and select left-hand drive European countries.
Tesla isn’t the only company to have sought exemption from tariffs on key components of its products manufactured in China, General Motors, Apple and Fitbit have also done the same requesting for exemptions for product components made in the country.
25% tariffs have been imposed on a total of $50 billion worth of annual Chinese exports and also 10% tariffs on an additional $200 billion worth of goods by the Trump Administration so far due a trade war between both countries.
