Tesla seeks lower duties under EU electric vehicle probe

By Camille Gijs, Koen Verhelst | 05/10/2024 12:31 PM EDT

In a letter seen by POLITICO, Tesla seeks to avoid being unfairly targeted by duties based on state aid doled out to its Chinese competitors.

The Tesla Gigafactory in the China Pilot Free Trade Zone is seen in Shanghai, China, on Sept. 26, 2023.

The Tesla Gigafactory in the China Pilot Free Trade Zone is seen in Shanghai, China, on Sept. 26, 2023. Liu Ying/Xinhua via AP

BRUSSELS — Tesla has been pushing to be treated like other selected companies in a European Commission probe into Chinese subsidies to electric vehicle makers, according to a letter seen by POLITICO, as it seeks to soften the impact of punitive duties that the EU is expected to impose within weeks.

In the letter, dated March 27, the Chinese branch of the U.S. company headed by billionaire Elon Musk requests a hearing with the commission. It says it is “open for inspection” — meaning it is ready to receive EU inspectors at its facilities like the three producers Brussels selected for such visits: BYD, SAIC and Geely.

The letter also argues that “given the percentage of Chinese exports that Tesla represents, it is inevitably in a particular situation compared to other, much smaller exporting producers.”

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If the commission accepts, this could mean it would need to visit the Chinese facilities of the EV maker in the summer. A lawyer for Tesla did not respond to a request for comment.

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