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Tesla among brands likely subject to EU subsidy probe to judge fairness of China imports

Credit: Tesla China

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Tesla is among several brands that export vehicles from China to Europe that may fall under a new probe to judge the fairness of subsidies that European car buyers receive for driving electric cars.

Tesla has used its Chinese Gigafactory in Shanghai as an export hub for several years, and the production plant has been widely responsible for the automaker’s performance in the European region for several years. While Tesla operates a production facility in Europe, which is located in Brandenburg, Germany, it only builds the Model Y, the company’s crossover.

The Model 3 for the European market is built in Shanghai, has been available for a longer period of time, and has contributed to Tesla’s dominance over domestic companies like Volkswagen and BMW. This vehicle is exported out of China to Europe.

European Union (EU) officials are now questioning whether Tesla is gaining an advantage from building the vehicles in another region and shipping them to European customers. EU executive vice-president Valdis Dombrovskis said on Tuesday that there was “sufficient prima facie evidence” to justify a probe against the automaker and other Chinese companies, including Geely, which owns Volvo.

In an interview with the Financial Times, Dombrovskis said:

“Strictly speaking, it’s not limited only to Chinese brand electrical vehicles, it can be also other producers’ vehicles if they are receiving production-side subsidies.”

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He continued by stating the EU was “open to competition,” but the competition needed to be fair. He mentioned that other large markets had already introduced tariffs on batteries on EVs from China and that the EU is “probably” the biggest open market for these Chinese companies.

Chinese officials are obviously not in favor of the anti-subsidy probe, as the country’s commerce minister Wang Wentao argued the dominance China has seen in the EV space is due to years of R&D innovation, free competition, and a “complete industry system,” the report states.

The ministry said on Tuesday:

“Wang Wentao expressed serious concern and strong dissatisfaction that the EU would initiate an anti-subsidy investigation into Chinese electric vehicles.”

The Chinese commerce ministry accused the EU of “protectionism” that would have more macroeconomic effects, like environmental cooperation between regions and the stability of global automotive supply chains.

Roughly one-fifth of all EVs sold in Europe are built in China.

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I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk hints at Tesla Cybercab’s next market

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(Credit: Teslarati)

After launching in Austin, Texas, last week, Tesla is looking to expand the Cybercab to new parts of the United States in an effort that will see the driverless, steering wheel-less, and pedal-less vehicle chauffeur people around as part of the Robotaxi ride-hailing service.

However, the expansion will go far beyond the United States, and CEO Elon Musk revealed he hopes Europe will be the next market where Cybercab will be operational.

Musk has publicly expressed hope that Tesla’s Cybercab robotaxi will reach Europe in the near future.

On September 8, Tesla’s Chief Executive quoted a German rider who had just completed a trip in Austin, Texas, and wrote that he hoped the vehicle would not take years to arrive in Germany. Musk replied with a short but notable message: “Hopefully soon in Europe too.”

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The comment arrived only days after Tesla opened Cybercab ride-hailing to the public in Austin. The two-seat vehicle has no steering wheel or pedals and relies entirely on Tesla’s Full Self-Driving software. Early passengers have described the rides as quiet, smooth, and more stylish than competing robotaxis such as Waymo.

Austin is currently the only city where members of the public can hail a Cybercab through Tesla’s Robotaxi app. The initial fleet is small; Texas registration records show only a few dozen of the purpose-built vehicles on the road.

Tesla set to open Cybercab rides to the public, with no steering wheel or pedals

Tesla has also been operating a larger number of conventional Model Y robotaxis in the same area, but the Cybercab itself represents the company’s first dedicated, controls-free taxi design.

Europe presents a different regulatory picture. The European Union does not permit manufacturers to self-certify vehicles the way Tesla did in the United States.

Type-approval rules and a small-series limit of 1,500 automated vehicles per type per year apply across the bloc.

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Supervised Full Self-Driving has gained provisional approval in several member states through national recognition of Dutch certification, yet unsupervised robotaxi operation remains a separate and more distant step. Tesla has not announced a European launch city, date, or approval pathway for the Cybercab.

Musk himself has previously cautioned that the company does not control European regulators. In an earnings call earlier in 2026, he noted that even supervised FSD took an “immense amount of time” to clear and that unsupervised service would be “somewhat at the mercy of the governments in Europe and the EU.”

The latest social-media remark therefore functions more as an expression of intent than a timetable.

If the Cybercab eventually reaches European streets, it would mark a significant expansion of Tesla’s robotaxi ambitions beyond the United States. For now, the vehicle remains an Austin-only experience, and the gap between Musk’s hope and actual deployment will be decided by regulators rather than by engineering alone.

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Tesla Cybercab improvements are already on the minds of company engineers

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Credit: Tesla Europe & Middle East | X

Tesla Cybercab might have just rolled out to the public as it entered the company’s Robotaxi suite in Austin this past week. However, the vehicle might already be on its way to becoming even better, as the company is asking riders to describe what they’d like to see improved with the Cybercab.

Tesla sent a rider experience survey to Cybercab passengers only days after paid rides began in Austin. The questionnaire asks how satisfied riders were with the overall trip. Then it requests star ratings for availability and wait time, door functionality, vehicle touchscreen, mobile app experience, seat comfort, interior space, ride comfort, cleanliness, and cargo space.

A later section asks which features riders would most like to have and allows selection of up to three items from a list that includes heated seats, ventilated seats, fully reclining seats, a tray table, a wireless phone charger, a better sound system, and more storage. Respondents may also choose none of these or write in another idea. The survey closes with a recommendation score from zero to ten.

This rapid request for input illustrates Tesla’s habit of treating early users as collaborators rather than mere customers. The company has long refined vehicles through software updates and hardware changes informed by real-world use across its passenger cars.

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Collecting structured opinions so soon after commercial service started shows the same mindset applied to a purpose-built autonomous taxi. The questions themselves reveal an openness to cabin changes even after the first vehicles reached public streets, which is no surprise.

Tesla has always hoped to cater a great experience to anyone in its vehicles, which is why so many fan-requested features have made it into its vehicles.

Replies already circulating online favor reclining seats, tray tables, wireless charging, improved audio, and extra room when seats fold back.

Tesla Cybercabs narrowly miss deadly Amazon cargo plane crash

Those preferences point toward comfort upgrades that Tesla can implement in later production batches or through cabin revisions. Because the Cybercab is designed around software first principles, many requested amenities can arrive faster than in traditional automakers.

Tesla’s willingness to survey riders immediately after launch therefore makes near-term cabin and experience improvements likely as the team reviews responses and iterates toward a more refined robotaxi people will choose daily.

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Tesla Cybertruck engineer reveals new changes in ‘constantly evolving’ pickup

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Credit: Joe Tegtmeyer | YouTube

Tesla Cybertruck Lead Engineer Wes Morrill revealed the company has made several changes to the all-electric pickup, which he calls a “living thing, constantly evolving and improving.”

Cybertruck is manufactured at Tesla’s Gigafactory Texas just outside of Austin, and over the past few years, Tesla has continued to make small changes to the pickup to improve everything from cost, reliability, serviceablility, and manufacturability.

“The finish line isn’t getting to production. A product is a living thing, constantly evolving and improving,” Morrill added.

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Tesla Cybertruck AWD is a steal at $60k, is it still at $75k? Full Review

Some of those changes are yet to be revealed, but perhaps the most notable one was the change Tesla made to the aero shield that sits underneath the truck. In the past, it was aluminum, but now the Cybertruck is using a self-reinforcing polypropylene.

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Morrill said that the polypropylene is “stretched into fibers and then laminated into the form,” and is much more durable, much lighter, and significantly cheaper than aluminum when it is manufactured this way.

It also enabled some improvements in the geometry of the Cybertruck, improving the manufacturing around the bolts and edges, in addition to minor form changes. These all benefitted the Cybertruck in more ways than one: specifically with durability and improved drag.

Typically, Teslas are not necessarily identified by model year because these changes are fluid and occur when the company sees fit to implement them. It is not like other automotive companies, which usually make sweeping manufacturing changes when building a new model year.

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Instead, Teslas are recognized by their “generation” or “era.” For example, those with a newer Model Y might refer to their car as a “Juniper.” This is the same with Model 3, as many refer to the new body style as the “Highland.”

Tesla’s manufacturing changes are proof of the company’s constant need to improve its products and move things forward with its vehicles. There is no need to drag one’s feet and wait until next year if the product can be made better right now, and that’s precisely what Tesla did with the Cybertruck.

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