Tesla sues EU over tariffs on electric vehicles from China

Tesla is suing the EU over tariffs the bloc imposed on imports of electric vehicles from China, in the latest confrontation between the carmaker’s billionaire boss Elon Musk and Brussels, Report informs via Financial Times.

The European Court of Justice published confirmation of the case, filed by Tesla’s Shanghai subsidiary, on its website on Monday without giving further details. Tesla’s lawsuit follows similar claims filed by Germany’s BMW and several Chinese carmakers.

In October the EU imposed anti-subsidy tariffs of up to 7.8 percent for Tesla and up to 35.3 percent on other Chinese electric vehicle imports produced by other carmakers. They were in addition to a 10 percent standard import tariff for the industry. The anti-subsidy tariffs came after an EU investigation launched in 2023 on China’s unfair support for its EV industry. Brussels found that carmakers had benefited from soft loans, cheap land deals and subsidies for suppliers such as steelmakers.

About a fifth of all electric cars sold across the EU last year, or 300,000 units, were built in China. Tesla accounted for 28 percent of Chinese-made EVs imported into the bloc in 2023, more than any other brand, according to Transport and Environment, an environmental NGO. Tesla was hit with the lowest tariff after an individual examination by the EU found that it received the smallest amount of support from the Chinese government.

Tesla executives have said they are adjusting their import policy from China to respond to the EU tariffs. The company currently exports Model 3 vehicles from Shanghai to the EU, while it produces the Model Y in Berlin.