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Tuesday, Jun 24, 2025

Tesla Challenges EU Tariffs on China-Made Electric Vehicles

Tesla Challenges EU Tariffs on China-Made Electric Vehicles

Tesla files a lawsuit against the European Union over tariffs on electric vehicles manufactured in China, joining other manufacturers in contesting the EU's tariff measures.
Brussels: Tesla, the electric vehicle manufacturer owned by Elon Musk, has initiated legal action against the European Union at the General Court in Luxembourg.

The lawsuit opposes the EU's imposition of tariffs on electric vehicles produced in China, as reported by the Brussels-based publication, Politico, citing sources.

Similar lawsuits have been filed by three Chinese electric vehicle manufacturers previously.

The European Commission has been given a deadline of two months and ten days to prepare its defense.

Despite being an American company, Tesla manufactures the majority of its vehicles intended for the European market in China, including the production of batteries in Chinese facilities.

The lawsuit was filed even though Tesla received the lowest tariff rate of 8% following an investigation by the European Commission and on-field inspections.

In contrast, SAIC, a Chinese partner of the German automobile giant Volkswagen, faced a tariff of 35%.

The European Commission stated that a year-long investigation revealed substantial subsidies from the Chinese government, which have aided the Chinese electric vehicle industry in becoming a global leader.

Negotiations between the EU, car manufacturers, and the Chinese government are ongoing.

European Commission Vice President Maroš Šefčovič has remarked that the Commission stands firm in its position but remains open to finding a compromise solution.
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