28 January 2025

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Tesla has filed a lawsuit against the European Union over tariffs imposed by the bloc on imports of electric cars from China, in the latest confrontation between the automaker's billionaire head, Elon Musk, and Brussels.

The European Court of Justice published a confirmation of his case TeslaIts Shanghai branch posted on its website on Monday without providing further details.

Tesla's lawsuit follows similar claims made by German company BMW and several Chinese automakers.

In October the European Union Charge anti-support fees Up to 7.8 percent for Tesla and up to 35.3 percent on imports of other Chinese electric vehicles produced by other automakers. These were in addition to the standard 10 percent import tariff for the industry.

The anti-subsidy tariffs came after an EU investigation launched in 2023 into China's unfair subsidies for the electric car industry. Brussels found that carmakers benefited from soft loans, cheap land deals, and subsidies to suppliers such as steelmakers.

About a fifth of all electric cars sold across the European Union last year, or 300,000 units, were manufactured in China. Tesla accounted for 28 percent of Chinese-made electric vehicles imported into the bloc in 2023, more than any other brand, according to Transport and Environment, an environmental NGO.

Tesla received its lowest tariff yet Individual examination The EU found that it received the least amount of support from the Chinese government.

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

The legal filing did not provide any details about Tesla's argument. The case against the European Commission is scheduled to be heard in the General Court, the second highest court in the European Union, and the ruling can be appealed to the European Court of Justice. The process may take about 18 months.

“We are ready to defend our case in court as necessary,” European Commission trade spokesman Olof Gehl said Monday in response to Tesla's filing.

Musk, an adviser to US President Donald Trump and an outspoken critic of EU technology regulation, 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 European automaker Acea. Musk's political activism has been blamed Discouraging some drivers than buying a Tesla, even though it made others more likely to buy one.

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