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Tesla has reportedly joined Chinese automakers BYD, SAIC, and Geely in a lawsuit against the European Commission over duties on China-made electric vehicles.
Information about Tesla’s alleged involvement in the lawsuit were initially reported by POLITICO, which cited two industry sources that were reportedly familiar with the matter.
The automakers’ suit:
- Despite being a U.S.-based company, Tesla produces many vehicles for Europe in China. Its vehicles also use Chinese batteries. Hence, the company’s vehicles are subjected to extra tariffs.
- Tesla, however, has only received an 8% duty—the lowest rate among all exporters to the region—following individual scrutiny by European Commission investigators.
- In contrast, Volkswagen’s Chinese joint venture partner SAIC received a 35% duty.
- As per POLITICO, the carmakers’ lawsuit aims to annul the law which imposed the additional duties to China-made electric cars.
The European Commission’s stance:
- The European Commission seems ready to face the legal challenge from the automakers.
- “We’re ready. We’re a rules-based club here in the EU. If they want to take us to court, they can take us to court,” Olof Gill, EU trade spokesperson, stated.
- EU Trade Commissioner Maroš Šefčovič also met with China’s EU ambassador last week.
- While speaking with Morning Trade at Davos, Šefčovič expressed confidence that the EU was in the right. He also noted that the EU is willing to keep talking with China until a compromise is reached.
- “We continue the discussions. This issue is clearly not resolved, and therefore … these import duties stay in place,” the EU Trade Commissioner noted.
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