Tesla avoided some of the heftier tariffs of its competitors, but still isn’t happy
January 28, 2025 at 08:30
- The EU hit Tesla with an additional 7.8% tariff for Model 3s exported to Europe from China.
- An investigation found that the Chinese government had provided unfair subsidies to local brands.
- Tesla accounted for roughly 28% of all Chinese-made EVs exported to Europe in 2023.
Just days after it was confirmed that BMW, Geely, SAIC, and BYD, were suing the European Union, it’s been revealed that Tesla is doing the same. The action was taken by Tesla’s subsidiary in China and comes in response to EU tariffs placed against electric vehicles built in China and exported to Europe.
In the filing made with The European Court of Justice, Tesla did not provide details about its argument against the tariffs. What we do know is that the case will be heard by the second-highest court in the EU, the General Court, in a process that could take roughly 18 months.
Read: BMW Teams Up With Chinese EV Makers To Fight EU Tariffs In Court
Tesla is one of many car manufacturers impacted by the European Union’s tariffs against Chinese-made EVs. However, the tariffs levied against it are significantly smaller than those of its rivals. Following an investigation that stretched on for over a year, the EU found that Chinese brands had benefited from government subsidies, giving them a competitive advantage and allowing them to sell EVs cheaper than many Western carmakers.
Tesla was hit with an additional tariff of 7.8% in October last year following the probe, in addition to the pre-existing 10% levy. By comparison, BYD was hit with a 17% tariff hike, Geely got 18.8%, and SAIC received a hefty 35.3%. The EU found that Tesla had received the smallest amount of Chinese government support, hence why its tariff is smaller.
Although Tesla is an American company, it builds Model 3s in Shanghai and exports them to Europe. According to The Financial Times, Tesla accounted for approximately 28% of all Chinese-made EVs imported to the EU in 2023.
Olof Gill, a spokesperson from the European Commission responded to Tesla’s filing, saying, “We’re prepared to defend our case in court as necessary.”
