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When are the steel and aluminum tariff price increases going to hit?

Discussion in 'Model 3' started by iwannam3, Jul 10, 2018.

  1. iwannam3

    iwannam3 Member

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    Steel and aluminum prices have increased due to trump's trade war antics. When will the price increases show up in Teslas and other cars? I could see Detroit and others doing it for the 2019 models this September. I hope Elon will put it on the sticker as a separate "metal price adjustment" (or trump tariff surcharge) like the airlines did when fuel costs spiked. A reason the $35,000 Model 3 probably won't be sold for $35,000.
     
  2. voip-ninja

    voip-ninja Give me some sugar baby

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    Do you know that the steel and aluminum in the Model 3 are sourced from foreign suppliers?
     
  3. SZNJ

    SZNJ Member

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    Source does not matter. The tariffs limited overall availability so all steel and aluminum in the US has gone up already.
     
  4. voip-ninja

    voip-ninja Give me some sugar baby

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    I guess it would come down to how much Tesla cost has increased and how eager they are to pass that cost to consumers.
     
  5. SZNJ

    SZNJ Member

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    Indeed.
     
  6. voip-ninja

    voip-ninja Give me some sugar baby

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    It looks like after peaking in feb/march of this year aluminum ore prices are down by over 15% in the last month or so.

    I wonder what actual cost increase auto makers are seeing in their builds... $100 more, $300?

    I also have to imagine that as prices go up domestic suppliers are increasing production which should start to pull prices back down.
     
  7. iwannam3

    iwannam3 Member

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    The US suppliers jacked up prices once the import stuff went up. Theoretically they will take their tax cut $$$ and the increased profits and invest it in more on shore production. Or just buy back stock giving the executives lots of $$$. What do you think is going to happen?
     
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  8. omgwtfbyobbq

    omgwtfbyobbq Active Member

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    It may have already happened. At the same time, an extra few hundred dollars for a car likely won't break the bank.

    http://steelbenchmarker.com/files/history.pdf
     
  9. S'toon

    S'toon Knows where his towel is

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    Tax cut triggers $437 billion explosion of stock buybacks

    Corporations Invested Their Tax Cuts Into Stock Buybacks That Didn’t Even Work

    Reich: Trump's tax cut is fueling stock buybacks, not wage increases
     
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  10. voip-ninja

    voip-ninja Give me some sugar baby

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    They would all have to be in on it together for that to work out. If even one supplier lowers their prices and increases production the others have to follow suit eventually or they risk being iced out.

    In any event your scenario doesn’t appear to be panning out since US steel production is going up, substantially.

    Market Realist
     
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