Tuesday 02 October 2018 4:52 pm | Updated: Tuesday 21 May 2019 4:25 pm

Tesla raises fears over China tariffs despite beating Model 3 delivery targets

NULL

Production of Tesla cars reached a record high in the last quarter, but the firm remained hesitant of future success in China as a result of 40 per cent tariffs imposed on automotive imports from the US.

The electric vehiclemaker said it produced over 80,000 cars in the third quarter, while deliveries to customers reached a record 83,500 to surpass previous analyst estimates of 80,000.

This included over 55,000 deliveries of its Model 3 sedan, which faced a great deal of attention in the summer due to a ramp-up in production targets by the firm's chief executive Elon Musk.

However the firm said it has been facing a challenging environment in China, where its costs have risen 55 to 60 per cent as a result of tariffs. It is accelerating construction of its factory in Shanghai in response.

Musk confirmed the business' plans in China earlier this year, in an announcement that said Tesla will be able to manufacture up to 500,000 cars a year in its new gigafactory.

The news comes as Musk is preparing to step down from his role as Tesla chairman, but remain in his position as chief executive, as part of a settlement deal with the US securities watchdog.

Musk and Tesla were both fined a total of $40m over the weekend, after the SEC filed a lawsuit against Musk over his now infamous 7 August tweet in which he said he was considering taking the firm private.