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Tesla’s China-made EVs have been granted their own lower tariff rate by the European Union compared to other Chinese EVs destined for sale in the bloc.
Other EV producers can expect tariffs of up to 36.3%, while Tesla will be charged 9% on its China-made EVs. Chinese firms the bloc recognizes as collaborating with European automakers could see similar discount import duties soon.
The European Commission, the EU’s regulatory wing, had found Chinese EVs benefit from “unfair subsidization,” from the Chinese government, but after Musk requested Tesla be treated differently and a European team went to its facilities in China and decided Tesla was not so unfairly boosted, a Commission official told Nikkei Asia.
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It’s a win for Musk, who has fought with the bloc over regulations aimed at curbing misinformation and hate speech online that, Musk contends, are used to target his social media platform, X, while the EU has also tried to undercut his satellite internet network, Starlink, with its own constellation (although this hasn’t had much success, so far), Politico noted.
“Tuesday’s announcement represents another coup for Musk,” the outlet wrote, as he has managed to avoid partnering with a local Chinese company while setting up Tesla’s operations there, and has won the EU over despite the fact Tesla is the biggest exporter of EVs from China to Europe.