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Elon Musk's Tesla and German auto giant BMW have challenged EU import tariffs on China-made electric vehicles at the bloc's top court, the European Commission said Monday.
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Tesla's Shanghai subsidiary is suing the European Commission over tariffs imposed on Chinese-made electric vehicles, escalating tensions between Elon Musk and the EU.
Both BMW and Tesla have been hit with tariffs by the EU on imports of electric vehicles made in China, along with other Chinese manufacturers such as BYD and SAIC. View on euronews
Elon Musk’s Tesla and Bayerische Motoren Werke AG (BMW) have sued the European Union’s (EU) executive, adding to a flurry of cases by Chinese carmakers attacking tariffs peaking at 45% on imports of electric vehicles (EVs) into the bloc.
China’s biggest EV maker, BYD, built more electric cars than Tesla in 2024, signaling a global shift toward cheaper electric cars.
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.
BMW’s Chinese-made BEVs now incur EU import tariffs of close to 21%, while for BYD’ Auto the tariff rate is set at 17%; Geely 19%; and SAIC Motor 35%. Olof Gill, spokesperson for the European Commission (EC), confirmed earlier this week that the EU is prepared to respond to the case in court.