BMW and Tesla have both filed cases with the European Union’s (EU) Court of Justice challenging the EU’s recent decision to hike tariffs on Chinese-made battery electric vehicles (BEVs). The two automakers join a long list of Chinese automakers that have filed similar lawsuits against the EU,

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

The automaker estimates its struggling China business will cost $5 billion, but it isn't giving up on the country yet.

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. While the tariffs are significantly lower than the 100% punitive duties imposed by the United States and Canada on Chinese battery electric vehicles (BEVs),

The EU Commission had imposed duty rates on Chinese-made EVs in a bid to encourage domestic manufacturing. Tesla was subjected to the lowest rate of 7.8%, while other automakers such as SAIC Motor faced tariffs as high as 35%. These rates are in addition to a 10% standard import tariff.

Chinese EV makers BYD, Geely, and SAIC contested EU's import duties at Court of Justice. Tesla excluded from tariffs, gaining only 7.8% tax.

Tesla is challenging the European Union in court over the tariffs imposed on its Chinese electric vehicles despite getting

The European automotive industry faces rising tensions as BMW and Tesla Shanghai file lawsuits against the European Commission

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.

Both BMW and Tesla have been hit with tariffs by the EU on imports of electric vehicles made in China, along with other Chinese manufacturers such as BYD and SAIC.

Five years of rapid European growth for Chinese electric-car manufacturers ground to a halt in 2024, as trade barriers added to the challenge of building up sales in a stagnant market.Most Read from B

Brands led by SAIC Motor Corp.'s MG registered 3.5 per cent fewer EVs in the region for all of 2024, according to data from automotive researcher Dataforce