The EU hit Tesla with an additional 7.8% tariff for Model 3s exported to Europe from China. An investigation found that the Chinese government had provided unfair subsidies to local brands. Tesla accounted for roughly 28% of all Chinese-made EVs exported to Europe in 2023.

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

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. View on euronews

Mercedes-Benz has joined its Chinese joint venture partner Geely's legal challenge at the Court of Justice of the European Union (CJEU) against EU tariffs on China-made electric vehicles, a company spokesperson said on Tuesday.

Tesla and BMW both have significant production operations in China.