Tesla and BMW have filed lawsuits in the Court of Justice of the European Union (CJEU) against EU tariffs on Chinese produced EVs.

A 2023 investigation by the EU concluded that China was using state subsidies to lower the price of EVs in an attempt to flood the market and create an unfair advantage. The resulting tariffs of between 7 to 36 per cent, and an additional 10 per cent import tariff have been in operation since 2024.

Tesla, which has a factory in Shanghai and BMW that has a joint venture in Shenyang are joining Chinse carmakers BYD, Geely, and SAIC in taking their cases to court. The Chinese government also filed a complaint with the World Trade Organization (WTO).

Chinese EVs currently make up around one in five EVs sold in the EU but are making inroads. Several Western car manufacturers see joint ventures and imports from Chinese plants as a way to maintain market share in Europe and allow continuing exports to China, whilst others see such strategies as undercutting domestic producers and leading to technological knowledge loss.

The Telsa action, case T-38/25, appeared on the CJEU website. A case such as this is expected to take up to two years to reach a decision.

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