people declined to be named as the plan has not been made
public. They did not offer detail on the price change.
China allowed the yuan to weaken past the 7-per-dollar level on
Monday for the first time in more than a decade, after which the
U.S. government labeled China a currency manipulator, raising
the stakes in the trade dispute between the two countries.
China firmly opposes the currency manipulator label saying it
has not used and will not use the yuan to cope with the U.S.
The sharp drop in the yuan comes days after U.S. President
Donald Trump stunned financial markets by vowing to impose 10%
tariffs on the remaining $300 billion of Chinese imports from
Sept. 1, abruptly breaking a brief ceasefire in a trade war that
has disrupted global supply chains and slowed growth.
Tesla currently imports all the cars it sells in China, but it
is in the process of building a factory in Shanghai that will
manufacture Model 3 cars in the initial phase and help it
minimize the impact of the trade war and tariffs.
If enacted, this would be the first case of a planned price
adjustment by an importer since the yuan fell this week and
points to the growing pressure that importers are facing.
Tesla broke ground on the Shanghai factory in January and its
Chief Executive Officer Elon Musk has said the firm aims to
finish initial construction this summer and start production of
the Model 3 toward the end of the year.
Deliveries of all models in the second quarter this year rose
51% from the first quarter to 95,200 vehicles, including 77,550
Model 3s, 17,650 Model S and X.
Last month, Tesla globally dropped the standard-range variants
of its Model X and Model S from its product lineup and adjusted
prices across its range.
In China, the world's largest electric vehicle market, the trade
frictions between China and the U.S. has caused Tesla to adjust
its multiple times over the past year because of the tariff
Tesla did not immediately respond to a Reuters' request for
(Reporting by Yilei Sun and Brenda Goh; Editing by Himani Sarkar
and Christian Schmollinger)
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