Tesla takes the EU to court over tariffs on electric cars from China

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Tesla takes the European Union to court over the bloc’s tariffs imposed on electric car imports from China.

The European Court of Justice published a confirmation of the case, which he submitted Teslaaffiliated with Shanghai, posted on its website Monday morning without providing further details.

The American company follows BMW in Germany and several Chinese car makers who have filed claims against the European Union.

In October European Union It imposed an anti-rebound tariff of 7.8 percent on Tesla and up to 35.3 percent on imports of other Chinese electric vehicles. These were in addition to a standard 10 percent import tariff for the industry.

The case is the latest confrontation between the European Union and Tesla’s billionaire boss, Elon Musk, an adviser to US President Donald Trump.

Musk is an outspoken critic of EU technology regulation, and has supported the far-right Alternative for Germany party in the country’s election campaign.

New Tesla registrations fell 13 percent year-on-year to 242,945 vehicles in 2024, according to ACEA, the European auto industry body. Musk’s political activism was blamed Deterring some drivers of buying a Tesla, even though it made others more likely to buy one.

About a fifth of all electric cars sold across the European Union last year, or 300,000 units, were built in China.

Transport and Environment, a consultant, found that Tesla accounted for 28 percent of Chinese EVs imported into the European Union in 2023—more than any other brand.

An EU trade investigation found that car makers benefited from soft loans, cheap land deals and subsidies to suppliers such as steel makers.

Tesla had the lowest tariff because it received the smallest amount of subsidies.

European trade spokesman Olof Gehl said last week after initial challenges were made by BMW and other automakers: “We are prepared. We are a rules-based club here in the EU. If they want to take us to court, they can take us to court.” .

The filing did not provide any details about Tesla’s argument. The case against the European Commission will be heard in the General Court, the second highest court in the EU, and the ruling can be appealed to the ECJ. The process may take about 18 months.

Tesla executives said they are adjusting their import policy from China to respond to the EU tariff. The company currently exports Model 3 vehicles from Shanghai to the European Union, while producing the Model Y in Berlin.