Tesla's (NASDAQ:TSLA) website reveals that as a result of additional new tariffs resulting from Friday's official trade war launch, prices of Tesla vehicles sold in China mainland have spiked right back up, with the prices of both the Model S and Model X rising by roughly 20%.
China has been one of Tesla's core markets, where after a slow start it managed to double its its sales in 2017 to over $2B. This represents over 20,000 vehicles based on their average sale price.
The price hike will likely to put a dent in demand, which likely means that CEO Elon Musk will push hard for another major spending spree, one which gives the company the financial flexibility to build a Chinese factory avoiding tariffs altogether. (source: Zero Hedge)
The obvious question for TSLA shareholders will be what dilution of the existing stock price will this major expansion entail, "as Musk has no choice but to raise capital once more."
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