Under stricter European Union regulations taking effect this year, automakers selling cars in Europe face large penalties if their vehicle

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The EU imposed anti-subsidy tariffs of 7.8% on Tesla on top of the 10% levy. BMW’s imports were hit with a 20.7% duty. The firm was hit because its electric Mini Cooper and the 100% electric Mini Aceman are made in China, according to car website Autogear.

Tesla's legal challenge is in response to the EU introducing tariffs at the end of October of 7.8 percent on Tesla's China-made vehicles. The bloc has also set tariffs of up to 35.3 percent on other China-made EVs. The new tariffs come on top of a 10 percent standard import tariff that was already in place for electric vehicle imports into the EU.

The EU imposed extra tariffs of up to 35% on Chinese-manufactured EVs in October after an anti-subsidy investigation found Chinese state support was unfairly undercutting European automakers.

Tesla and BMW sue EU over tariffs on electric vehicles from China, joining Chinese automakers that filed claims. Read more.

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.

The automaker saw sales of its EVs drop 13% in the European Union in 2024, and is facing growing pressure as rivals launch a wave of cheaper EVs.

Tesla TSLA has joined BMW and several Chinese manufacturers in challenging EU tariffs on China-made electric vehicles at the Court of Justice of the European Union (CJEU), per a court filing.

European automakers face challenges from stricter EU carbon emission regulations, leading them to buy emissions credits from rivals like Tesla and Chinese companies. The regulations, mandating increased zero-emissions cars production,

European carmakers are urging Brussels to ease regulations to help them avoid buying carbon credits from rivals in increasingly large amounts.